Tower power: Hammerson's Bishopsgate deal

The Bishopsgate tower, rebuilt after the IRA's 1993 bomb attack on the City, is in line for an overhaul after developer Hammerson struck a £100 million deal to buy its 999-year lease.

Hammerson has held a shorter-term lease on 99 Bishopsgate since it was rebuilt in 1994 after the attack, in which one person was killed and 44 injured, and caused £1 billion in damage.

Buying out Prudential's "virtual freehold" on the 31,500 sq m building will save it £4.2 million a year in rents to the insurer. Major tenants include legal firm Latham & Watkins, Deutsche
Bank and Korea Development Bank.

Hammerson is planning a major refurbishment of the 13,500 sq m in space occupied by Deutsche Bank when it moves out later this year.

This space will hit the market in 2012 when the City office market is expected to be hit by a supply squeeze.