Hammerson's 74pc return on office sale

PROPERTY giant Hammerson is set to make a 74 per cent return from the £134m sale of a London Docklands office tower, in a portfolio reshuffle aimed at unlocking capital for new buys.
By The Newsroom
Published 22nd Jun 2010, 23:25 BST
Updated 22nd Jun 2010, 23:25 BST

The 16-storey Exchange Tower property, near London's Canary Wharf business district, has been sold to MGPA Europe Fund III for 3m more than its valuation at the end of 2009.

Hammerson is benefiting from a resurgence in investor interest in London offices as prices and rents rally amid increased occupier demand.

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Hammerson chief executive David Atkins said: "Harbour Exchange has been a good investment. I believe the capital can be better deployed."

The 45,000 square metre tower was originally acquired by Hammerson in 1999 for about 77m and generated rents of 10.7m at the end of 2009.

Hammerson has said it is unlikely to resume mothballed developments in Britain this year, including the Eastgate scheme in Leeds and Sheffield's Sevenstone development, because of the tough retail climate and slow recovery from recession.

A spokesman said its stance in Britain has not changed. "We're ready to progress as soon as UK retailers are confident enough to sign up to economic rents."

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