Hammerson London Office Portfolio Sold for £518M

Hammerson PLC announced this week that it had sold the majority of its office portfolio totaling 884,000 square feet to Brookfield Office Properties for aggregate cash proceeds of £518 million, or $812 million. Brookfield Office Properties is funding the acquisitions through the assumption of $106 million of debt, additional property-level debt expected to be put in place prior to close and from available cash resources. Earlier this year Hammerson announced a revised strategy to become a specialist retail property company, and the intention to sell its London office assets.

The portfolio includes:

-125 Old Broad Street: 26 floors and 98% leased
- 99 Bishopsgate: 26 floors and 62% leased
- Leadenhall Court: 6 floors and 100% leased
- 1 Puddle Dock: 7 floors and 100% leased
- Principal Place, a development property planned for a 599,000-square-foot office tower

Brookfield will look at other buying opportunities “across all of the central London marketplaces,” Martin Jepson, senior vice president for development and investment, told Bloomberg. "This transaction is a unique opportunity for Brookfield Office Properties to acquire a portfolio of top-quality office assets and a well-located development site in the London market," said Dennis Friedrich, president and global chief investment officer of Brookfield Office Properties. "This acquisition aligns with our strategy of providing front-office accommodations to the world's most prestigious tenants by owning and operating premier properties that are well-located within the most dynamic global markets."

For more news or information visit Blumberg Capital Partners.

JV Investing up to £200M in London's West End

A joint venture between Grosvenor Fund Management and the Canada Pension Plan Investment Board (CPPIB) has formed this summer to invest up to £200 million in London's West End office market over the next two years according to a Benefits Canada article. Grosvenor will invest £10 million and lead asset sourcing and management activities while CPPIB will invest the remaining £190 million.

Wenzel Hoberg, Canada Pension Plan Investment Board's managing director and head of European real estate investments, said, "This venture with Grosvenor Fund Management provides us with an entry into an attractive, niche commercial real estate market in West End London. This investment aligns with our existing European real estate investment strategy and introduces us to a well-respected partner in Grosvenor Fund Management, which has a unique knowledge of the West End office market and strong active management and refurbishment expertise."

Mervyn Howard, Director Grosvenor Fund Management, said: "We are delighted to have formed this venture with CPPIB who share our belief in the future strength of the central London office market. Grosvenor and Grosvenor Fund Management have been active in the London office market through many cycles. We have the in-house skills to execute the strategy of the Partnership and believe the timing is right."

For more news and information visit Blumberg Capital Partners.

JP Morgan Purchases Lehman HQ in London for £495M

J.P. Morgan announced today that it had acquired 25 Bank Street in Canary Wharf for £495M according to a Guardian article. The building, home of Lehman's European arm until 2008, will become the new European headquarters of J.P. Morgan's Investment Bank in 2012. In addition to this property, Morgan has also agreen to purchase 60 Victoria Embankment in London, a building that the firm has leased since 1991 and houses its Treasury and Security Services Division. The City minister, Mark Hoban, described JP Morgan's decision as "excellent news". Morgan purchased the Bank Street building from Canary Wharf Group and has said it will continue to work with the group to develop the Riverside South site at Canary Wharf for future use.

"These buildings ensure that our employees will have the necessary technology, infrastructure and amenities to take our businesses forward. Even during the recession, we have continued to invest and grow our businesses internationally," said Jamie Dimon, Chairman and CEO of J.P. Morgan. "These properties are long-term investments and represent our continued commitment to London as one of the world's most important financial centres."

For more news and information visit Blumberg Capital Partners.

£340M Leadenhall Building Deal Signed

The British Land Company and Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System (OMERS) Worldwide Group of Companies, have signed a deal to develop the Leadenhall Building in London on a 50:50 joint venture basis. According to CBC News, the total development cost for the project is expected to be £340 million. The project will become one of the tallest and most iconic buildings in London offering 610,000 square feet of ofice space in the heart of Square Mile and will include a four storey landscaping public space at the base of the building.

“We are delighted to be announcing the development of the Leadenhall Building,” Chris Grigg, British Land's CEO, said Monday. “With its unique and iconic architecture, it is a building which will provide an unbeatable combination of style, presence, location and office floor space in the heart of the City of London.” Practical completion to shell and core is expected in Q2 2014.

For more news and information visit Blumberg Capital Partners.