Hammerson buys offices

REAL estate investor Hammerson has teamed up with a Canadian pension investor to buy the long leasehold of 10 Gresham Street for £183m.

The joint venture has bought the Foster & Partners-designed building from Union Investment, a German fund. Union purchased the property from Standard Life in May last year.

Hammerson has paid £55m for a 30 per cent interest in the venture, and will manage the asset on behalf of the pairing with the Canada Pension Plan Investment Board. The total price included £8m in costs.

The eight-floor building is home to Lloyds TSB bank, law firm Milbank Tweed Hadley and investment firm JC Flowers. Passing annual rents total £10.7m, with an average headline rent of £44 per square foot and average lease length of 11 years.