Hammerson snaps up Leadenhall Court

London office building Leadenhall Court has been purchased by property company Hammerson in a deal worth £65 million. Located on the corner of Gracechurch Street and Leadenhall Street, the building is part of the portfolio securing the failed White Tower 2006-3 plc commercial mortgage backed security issue (CMBS). It is fully let to a subsidiary of RSA Insurance until March 2014 and generates rents of £7.2 million.

The £1.15 billion CMBS defaulted in July last year due to price crashes in the commercial property market and Leadenhall Court, which measures 109,000 sq ft, is one of nine buildings put up for sale by receivers and special services. 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.”

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