Commercial Finance Specialists

Property investment firm Hammerson has taken ownership of a prized London commercial development for £65 million.

A property investment firm has taken advantage of the number of distressed assets available in the UK market by purchasing a leading City development.

Leadenhall Court, a commercial development which sits in the heart of the City of London on the corner of Leadenhall Street and Gracechurch Street, was acquired by Hammerson for £65 million.

The building formed part of the White Tower commercial mortgage-backed security issuance, which, in combination with eight other buildings, was once valued at £1.8 billion.

As the recession hit, Syrian property magnate Simon Halabi's firm defaulted on £1.1 billion of loans after that valuation halved, with receivers from Ernst & Young being called in last September.

"This acquisition is in line with our strategy to take advantage of attractive opportunities offered by current market conditions," said David Atkins, Hammerson chief executive.

Earlier this month, Standard Life Investments' investment director Andrew Jackson told City Wire that he expects commercial property values to fall by five per cent this year, as the market enters a "double-dip" recession.

Posted by Tess Nelson.