British-based property business Helical Bar has sold its short leasehold interest in Rex House on London’s Regent Street for £34 million.
The lease, which still has 26 years remaining, was purchased by the Crown Estate. Although the valuation has dropped 8 percent since last March, the sale still reflected an initial yield of 12 percent. The building consists of 91,000 square feet of office space, which is fully let to four different tenants.
A press release from the FTSE 250-listed company said that Helical plans to use the cash injection to offset some of their current bank loans and to reduce the proportion of debt on their other properties, which include a 120,000 square foot mixed-use development in Hammersmith in partnership with Grainger plc.
Helical acquired Rex House in 2000 for a total sum of £22 million, which included significant redevelopment costs.