The future of Hammerson’s giant office-led development at London Wall Place, EC2, was hanging in the balance this week as the REIT and the City of London attempted to reach an agreement.
Hammerson’s option on the 500,000 sq ft scheme was due to expire at 5pm on 31 May, raising the possibility that the site could be brought to market by the City Corporation.
Talks were ongoing as EG went to press, with the parties agreeing a short-term extension to the option as they attempted to reach a longer-term agreement.
Over the course of the day, negotiations were in a continual state of breaking down and being resurrected.
Should City planners fail to agree terms with the developer, the site could be sold on the open market. It would be one of the largest sites to come to market from the City Corporation.
Hammerson has already written off at least £17m of costs on One London Wall Place after JP Morgan Chase ended discussions to relocate its new European HQ at the development in 2008.
The overall cost of the scheme – which includes a 300,000 sq ft building and 195,000 sq ft tower – is thought to be around £345m.
Plans were approved by the City of London last summer.
The parties have previously agreed extensions to the option, but Hammerson’s decision to withdraw from the London office market to specialise in retail raised a question mark over the development’s future.
Chief executive David Atkins said at the time that the sell-off only applied to its “standing” portfolio of completed offices, and a City of London spokesman dismissed suggestions that the February announcement was behind the current difficulty.
Both parties declined to comment.
jack.sidders@estatesgazette.com
