The company has sold the medium-term leasehold interest in 1-16 Ulster Terrace, London NW1 to a private investor for £3.5 million ($5.5 million) reflecting a net initial yield of 6.9%. The property comprises offices on the basement and ground floors, which are let to Alliance & Leicester until 2019, and long residential leases on the upper floors.
At the same time DevSecs has bought the freehold of in a 29,000-sf retail warehouse in Stephenson Way, Formby for £3.205 million ($5 million), reflecting a net initial yield of 6.9% with a reversionary yield of 7.8% in 2006. The property is let to the Focus DIY Group until October 2011 at a rent of £234,000 ($375,000) per annum.
Matthew Weiner, Director of Investments at Development Securities said: "These two transactions represent a switch of funds from ex-growth central London offices into reversionary retail warehouses without sacrificing income return. The combined transaction signifies further progress against our stated investment strategy of the proactive management of the portfolio, rotating between market sectors to maximise exposure to growth stock."
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