Hammerson Buys 999 Year Lease

16Sep11

Hammerson has paid for a record-breaking 999-year lease on an office
building in London.  The extraordinary lease for the commercial property
known as 99 Bishopsgate cost the company no less than £100 million
(which translates to around 160.7 million US dollars).  They also intend
to perform some refurbishment on the office space contained within in
order to capitalise on the current shortage of such space that is
afflicting businesses in the London area.  The commercial property was
reconstructed 17 years ago in 1994 and Hammerson has purchased the
lease, which does not expire until the year 2100, from PRUPIM, who were
acting on behalf of Prudential Assurance Company. 

 

Hammerson says that 99 Bishopsgate is currently occupied by Charles
River Associates International, Korea Development Bank, Latham &
Watkins, and primarily by Deutsche Bank (DBKGn.DE), while also noting
that “Deutsche Bank is expected to vacate the majority of its space
later this year”. 

 

Around 13,500 square metres of the available office space in Canary Wharf
within this building will be refurbished by the Anglo-French property
investment company, to be finished for 2012 “during a period of expected
undersupply”.  “We have an exciting business plan for the property,”
says Hammerson’s chief executive officer, David Atkins. 

 

The number of major office developments in the London area has gone
up by more than 50 per cent in the first half of this year, with Land
Securities and Great Portland Estates being among those involved in the
projects.

 

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