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LONDON-Development Securities has sold a 27,940-sf office building at 43 Fetter Lane, London EC4 to clients of Capital Trust for £11.7 million ($17 million), reflecting a net initial yield of 6.35%. The freehold and long leasehold office building at the junction of Fetter Lane and New Fetter Lane is the head office of the law firm DJ Freeman.

The office space is let to the partners of DJ Freeman on a lease expiring in 2018 at a current rent of £785,000 ($1.15 million) per annum. This the 17this sale this year by Development Securities, raising a total of £26.6 million ($39 million).

Development Securities’ Director of Investments Matthew Weiner said there was a medium-term target to raise the company’s investment portfolio from £100 million ($160 million) to £150 million ($240 million): “Despite current market conditions, wecontinue to appraise investments on a stock selective basis,” he said.

“We believe that the Fetter Lane property offered limited performance potentialin the short to medium term and felt that the current strong investment appetitefor long income presented the ideal disposal environment. In addition the salereduces the company’s exposure to the City of London to zero, which givencurrent sentiment is considered to be a prudent strategy.”

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