CMS Cameron McKenna pulls out of City office pre-let

Law firm postpones decision to relocate from existing City offices

Article posted: 20 Jan 2012

Hammerson plc has been informed by CMS Cameron McKenna, with whom it had agreed initial Heads of Terms regarding a partial pre-letting of office space in the City of London, EC2, at Principal Place, that CMS has postponed its decision to relocate. Hammerson and CMS are therefore unable to conclude discussions regarding the pre-let agreement at Principal Place.

Since obtaining planning approval for Principal Place in July 2011, Hammerson has made good progress with a number of the design and consent elements of the scheme, improving its profile and deliverability. Principal Place can be completed within two years of commencing construction, and offers large floor plates and flexible office accommodation at affordable rental levels in a convenient, vibrant location.

Dick Tyler, Senior Partner, CMS Cameron McKenna commented: "As a result of the current uncertainties in financial markets, we decided not to enter into a significant long-term premises commitment. We have been working well with Hammerson, and Principal Place will be a high-quality head office in an excellent location, however we will postpone our decision to move until market conditions are more stable. The firm's lease of Mitre House in Aldersgate Street expires in 2015 and we will explore our relocation requirements in London nearer the expiry date."

David Atkins, Chief Executive of Hammerson, commented: "I have consistently said that in current conditions we would not expose our shareholders to excessive risk through building London offices on a speculative basis, which remains our policy. We have made good progress with the design and planning of Principal Place over the last six months, which I am confident will further improve its appeal to potential occupiers, and we continue actively to seek office tenants. We are clearly disappointed by CMS' decision to postpone their relocation until market conditions are more stable, but understand their position."

Headquartered at offices in Aldersgate, CMS also operates out of office space in Aberdeen, Bristol and Edinburgh as well as additional City offices on Leadenhall Street, EC3.

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Posted by Sam