Stock Exchange properties to be sold for £68m

Developer Hammerson has agreed to buy three buildings from the London Stock Exchange for an initial price of £68m including costs.

The properties, all of which are freehold, comprise the London Stock Exchange tower building, the former Stock Exchange market building and 24 Throgmorton Street, the former Post Office building.

Completion is expected to take place in July following the London Stock Exchange's relocation to Paternoster Square.

The 0.6ha site has planning consent for a total of 45,500m² of office and retail space. The scheme, designed by architect, Nicolas Grimshaw & Partners, comprises two principal elements: the refurbished tower building, incorporating an adjoining new East building; and a new low rise West building.

It is anticipated that a redevelopment will be undertaken on a phased basis, commencing with the refurbishment of the tower building and construction of the East building, with a possible start on site during 2005.

John Richards, chief executive of Hammerson, said: "This acquisition is in line with the group's strategy of maintaining a pipeline of future development opportunities and recycling capital.

"Since the beginning of 2003, we have raised nearly £250m from the disposal of office properties in central London. I believe that the future redevelopment and ownership of these buildings will generate attractive returns."