Hammerson has sold off its last remaining office building as part of a strategy set out two years ago to focus solely on retail property in the UK and France.
The FTSE 100-listed company announced yesterday that it had sold its 50 per cent stake in 10 Grosvenor Street in Mayfair to its joint venture partner Grosvenor Fund Management for £54m.
The 63,500 square feet office block was built by Hammerson and Grosvenor in 2003 and is fully let to tenants, including Primark owner Associated British Foods, as well as Hammerson itself.
Chief executive, David Atkins, said: “The disposal… has given us the flexibility to secure leases on two new office premises in locations which we are confident will be popular with both our staff and customers, as well as supporting our operational strategy and reducing our cost base.”
It plans to relocate its staff next year to two new offices – one in London’s Kings Place and the other at Aquis House in Reading.
Hammerson has generated £690m from the disposal of its offices portfolio. The funds have been used to invest in new retail developments, including Victoria Quarter in Leeds, which it snapped in 2012 for £136m.