New Star sells London property site


New Star UK Property Unit Trusts has sold 60 Gracechurch Street in London.

The sale follows a strategic review of its property holdings and the firm has now reduced "single asset exposure in the portfolio".

Roger Dossett, chief executive property fund management, said it received "a high level of interest from active buyers," which he felt was "an encouraging sign for the UK commercial property market".

"The sale of 60 Gracechurch Street in the City of London is a positive sign that liquidity and transaction levels have improved in 2008."

The final sale price was £127.5 million, a 5.5 per cent yield, which the fund said was "good value for the City office market".

On December 31st 2007, the group’s total funds were £23.1 billion, although recent falls in property valuations may have lowered this figure.

Commercial property in London is part of a fluid market, which benefits from foreign investment and the ongoing success of the capital as a commercial centre.

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