Hammerson increases ownership of Bishops Square

                        Hammerson has increased its ownership of its Bishops Square development in Spitalfields, E1.   The developer has agreed the final payment terms for the City of London Corporation’s long leasehold interest in the 824,500 sq ft scheme.   Hammerson entered into a joint venture agreement with the City to develop the development in 2002.   The agreement said that the final payment would be made following completion of the building and the determination of all costs.   Hammerson has said that a payment of £134m will be accordingly accrued in its 31 December 2007 accounts and paid in the first half of 2008 from the group’s existing financial resources.   The City retains the freehold interest in the scheme, with Hammerson holding an effective 95% economic interest.   The scheme provides 774,000 sq ft of offices and 5,000 sq ft of retail in 21 shops, which opened in October 2005.   Law firm Allen & Overy took occupation of the offices in Autumn 2006. The total passing rent from the scheme is £34m.   Hammerson chief executive John Richards said: “Bishops Square has been a highly profitable development. It has transformed the Spitalfields area adjoining the City, regenerating a key site and acting as a catalyst for further investment in the area.”   Michael Snyder, chairman of the City of London Corporation’s policy and resources committee said: “This was an extremely successful project, which brought forward the sensitive development of a run-down site, providing modern accommodation for one of the world’s leading law firms. We look forward to working with Hammerson on the future development of Bishops Quarter and elsewhere in the City.”   darren.lazarus@rbi.co.uk