CLS Holdings has sold two buildings from its commercial property portfolio.
It sold Brent house to the London Borough of Brent for £17 million. The council currently rent 60 per cent of its 96,393 sq ft of office space – Air France and Capita are also tenants.
GMS Estates purchased the second property, 22 Dukes Road, for £5 million. CLS bought the property in 1995 for £1.8 million and the sale represented a net initial yield of 6.34 per cent.
Sten Morstedt, executive chairman, said the company was "very pleased to have sold both these properties".
Commercial property values have fallen dramatically – so much so, some funds are now looking for cheaper commercial property deals.
Hector Sant, chief executive of the Financial Services Authority told the Building Societies Association Conference yesterday, some lenders had showed "poor understanding of the extra risk of major exposures to commercial borrowers".