Herbert Smith has advised Hammerson as the lead legal advisor on the sale of the majority of its office portfolio to Brookfield Office Properties for aggregate cash proceeds of £518 million.
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 main assets being sold are: 99 Bishopsgate, EC2; the 50% stake in 125 Old Broad Street, EC2; Leadenhall Court, EC3; and the development site Principal Place (commercial and residential), EC2.
This is a major disposal comprising six assets which represent 75% of Hammerson’s London Group portfolio, which allows the company’s significant reinvestment programme to increase scale in successful retail property sectors.
The proceeds will be used to increase scale and focus through investment in retail developments and acquisitions in Hammerson’s three chosen areas: prime regional shopping centres, convenient retail parks and premium designer outlets.
The Herbert Smith team was led by real estate partner Julian Pollock and corporate partner David Paterson, assisted by lead associates Alice Rogers and Peter Blythman. The firm advised on 99 Bishopsgate, aspects of Principal Place and 125 Old Broad Street and two smaller assets.
Jonathan Solomon and Geraldine Pigot led the Clifford Chance team and advised on aspects of 125 Old Broad Street and Principal Place. Simon Staite and Chris Mundell led the Nabarro team and advised on Leadenhall Court. Freshfields Bruckhaus Deringer, led by John Fordham, advised Brookfield in the transaction.
Herbert Smith partner David Paterson commented:
“It was a big task – and took a big team – to deliver this complex portfolio, with assets in various structures, in a very short timescale. But we are delighted to have helped Hammerson successfully deliver the step change in strategic focus, especially in today’s challenging markets.”
