Hammerson has agreed the £134m payment for the long-leasehold interest in the major office and development at Bishops Square in central London.

Hammerson entered into a joint venture with the City of London Corporation to develop the 824,500 sq ft scheme at Spitalfields in 2002.

It was agreed the final payment would be made after the building was completed and all the costs had been determined.

The £134m payment will be added to Hammerson’s account on 31 December 2007 and then paid out in the first half of 2008.

The City will keep the freehold interest giving Hammerson an effective 95% economic interest in the development.

Bishops Square provides 774,000 sq ft of office space which is let to international law firm Allen & Overy at a yearly rent of £34m – they have since sublet 80,000 sq ft to French bank Societe Generale.

The 50,500 sq ft retail element, totalling 21 shops, opened in October 2005.