Hammerson sells interest in 83-85 Pall Mall, London SW1
17 July 2006
Hammerson plc has sold its leasehold interest in 83-85 Pall Mall, London SW1, to a UK pension fund client of Orchard Street Investment Management LLP for a net consideration of £36.7 million. The sale price reflects a premium to book value of £8.3 million.
The building, held on a long lease from the Crown Estate, was acquired by Hammerson in 1982 and redeveloped two years later to provide 4,400 m2 of high-quality office space, which was refurbished in 1999. The net passing rent on the property is £1.4 million.
John Richards, Chief Executive of Hammerson plc, said:
“This is in line with Hammerson’s policy of recycling capital. The Company plans to reinvest the proceeds in assets offering greater potential for asset management and development.”
Chris Bartram, Chairman of Orchard Street Investment Management LLP, said:
“We are delighted to have acquired this asset which has significant reversionary income potential and is in a market where we see good growth in the years ahead.”
END
About Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market with £2.7 billion of AUM (as at 30 June 2024). It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial warehouses, retail warehouses, and offices.