X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Hammerson has sold an office investment to German fund KanAm Grund Kapitalanlagegesellschaft for £74 million ($120 million).

The 99,030-sf block is let to American law firm Latham & Watkins at £4.8 million ($7.7 million) a year and the disposal of the investment means Hammerson has secured a £10 million ($16 million) profit on the building. The proceeds will be used to cut borrowings. Insignia Bourdais and Jones Lang LaSalle advised Hammerson on the Paris deal.

Details of the deal were announced at the company’s AGM where it was also announced that David Edmonds, the director-general of communications watchdog OFTEL, has been appointed a non-executive director of the company.

Earlier this year Hammerson reported increases in values in the UK and French retail portfolios, but a fall in London and Paris offices during 2002. The group predicted a continued deterioration in the central London office market in the second half of the year and added that, and while there should be some recovery in the occupational market in 2003 and 2004, that was unlikely to translate into a recovery in rental levels.

At the time the group also warned shareholders to anticipate “some further softening in rents in 2003″ in Paris offices, with potential occupiers cautious about entering into new commitments.

But at the AGM chairman Ron Spinney confirmed that Hammerson is still focusing on prime retail and office properties in a small number of key European markets. He added that they should provide a “robust” rental stream and potential for continuing income growth over the next few years.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.