Hammerson bought the 280 Bishopsgate development site in 1999 for £27.5 million. ($40 million) and in December 2000, it pre-leased the entire 270,000-sf building to the Royal Bank of Scotland plc for 25 years at £15 million ($22 million) per annum. The rent-free period ended on 2 April 2002.
Hammerson said the sale price is slightly below the 31 December 2001 valuation, but it shows the company a profit of £118 million ($170 million). Chief Executive John Richards said: 'This disposal demonstrates the continuing strong demand for prime City office investments let on long leases to first class tenants. The proceeds will be used to reinvest in the company's other activities'.
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