In the City, Hermes, manager of the BT pension fund, has boughtCheapside House, EC4 for £47.8 million ($72 million). On settlementof outstanding reviews the price will reflect an initial yield of7.2%. And in Midtown, Dawnay Day and Patron Capital Partners havebought 141-3 Drury Lane, WC2 for £13.3 million ($20 million)reflecting an initial yield of 7.0%.

Helical still has 60% of its assets in Central London, but oncethe proceeds of these recent sales have been reinvested this isexpected to fall to 50%. The targets for new investment are highmargin, value added deals in the industrials and retail sectors.However, the company is not abandoning central London totally as itis preparing a number of developments for completion from 2004 whenit anticipates a recovery in the London and South East officemarkets.

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