60 Threadneedle Street sold to St Martins Property Investments

Strutt & Parker has advised Hammerson plc on the freehold sale of 60 Threadneedle Street, London EC2, to St. Martins Property Investments Limited, the UK-based real estate investment vehicle of the State of Kuwait.

The net consideration after deducting rental top-ups is £176 million, £5 million of which is deferred subject to certain conditions which are expected to be satisfied by 2013. The last valuation at 30 June 2011 was £165 million. Passing rents, post rent-free periods, are £8.8 million and the price represents an initial yield to the purchaser of approximately 4.75%.

Completed by Hammerson in January 2009 at a cost of £124 million, the 19,900m2 (214,200ft2) building is in the centre of the City of London, and forms part of the site previously occupied by the London Stock Exchange. It provides nine storeys of office accommodation with tenants including Talbot Underwriting, Universities Superannuation Scheme, Berenberg Bank and The Toronto Dominion Bank.