Globe House is a 192,675-sq m building developed by Hammerson in 1998 and leased to tobacco giant BAT. In August 2002, a new 22 year lease was agreed with BAT at a rent of £10.3 million ($16.2 million) per annum. The proportion of the sale price allocated to Globe House is £142 million ($223 million).
The second building, 16 Old Bailey, totalling 93,650 sf, is occupied by the law firm Withers under three leases with an average unexpired term of 14 years, at a current annual rent of £3.6 million ($5.65 million).
The sales reduce the proportion of Hammerson's portfolio helf in central London office buildings to 19%, against 23% at 31 December 2002.Chief Executive John Richards said: "These sales indicate the continuing demand for prime office buildings let on long leases to good covenants. As well as reducing our central London office weighting, the transaction increases the group's financial resources."
Hammerson was advised by Insignia Richard Ellis and CGI was advised by FPD Savills.
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