The City of London Corporation is to bring the London Wall Place, EC2, development site to market following Hammerson’s withdrawal from the scheme.
Jones Lang LaSalle has been appointed to market the St Alphage House site on London Wall, with formal marketing expected to start in the autumn.
Hammerson announced this morning it would allow its option to expire on the 500,000 sq ft scheme as part of its plans to become a specialist retail REIT.
The statement said: “The option has no value in Hammerson’s books, and in line with its revised strategy, Hammerson intends to allow it to lapse by 28 June 2012 as the scheme does not provide sufficiently high returns to the company.”
Estates Gazette revealed last month that frantic negotiations were going on between the parties which could see the site brought to market.
The site has planning for two buildings of 300,000 sq ft and 200,000 sq ft, designed by Make Architects.
City of London Corporation Property Investment Board chairman Michael Cassidy said: “This is a globally important headquarters office site in the City of London and will benefit from the arrival of the new Crossrail link in 2018, providing a speedy connection to Heathrow.
“This site epitomises the magic cluster effect of excellent transport links, first-class street infrastructure, highly attractive workplaces and the available supply of a highly skilled work force, all of which helps to maintain the City as a major world financial centre.”
He added: “The new offices at St Alphage should provide high returns to committed investors, and could be available at the end of 2015, when it is expected that there will be a lack of comparable new, high-quality office space ready to occupy”.
jack.sidders@estatesgazette.com
