Hammerson buys Leadenhall Court for £65m

PROPERTY company Hammerson has agreed a deal to buy London office building Leadenhall Court for £65m.

The property, on the corner of Gracechurch Street and Leadenhall Street, is part of the portfolio securing the failed White Tower 2006-3 plc commercial mortgage backed security issue.

The 109,000 sq feer building is one of nine put on the market by receivers and special servicers after the £1.15 billion CMBS defaulted in July last year as the commercial property prices hit lows.

Leadenhall Court is fully let until March 2014 to a subsidiary of RSA Insurance.
It generates rents of £7.2m.

Hammerson chief executive Davis Atkins said: “This acquisition is in line with our strategy to take advantage of attractive opportunities offered by current market conditions.

“The building will allow us to use our asset management skills to create value while offering a high initial yield and an immediate positive contribution to earnings.”