Hammerson and the Corporation of London have finally completed the signing of Allen & Overy at their Spitalfields development, E1, after offering a rent-free period worth millions of pounds.
A&O has signed for the 750,000 sq ft (70,000m2) building at Bishops Square for 25 years at around £45 per sq ft. The deal includes a 21-month rent-free period.
Hammerson said in March it had agreed terms, including a rent-free period of 18 months.
Hammerson chief executive John Richards said: “This is one of the City’s biggest-ever prelets and is a sign of occupiers’ determination to acquire efficient space, despite the slightly extra cost.”
Hammerson will increase its ownership in the scheme from 32% to 75% on receipt of planning consent, which is expected by the end of the year.
On completion, Hammerson will buy the Corporation of London’s 25% interest. The corporation will retain the freehold and Hammerson will be granted a long lease.
The letting agent for Bishops Square is CB Hillier Parker. A&O was advised by Cushman & Wakefield Healey & Baker.
