The sale reflects a capital value of just £174 ($250) per sf and a net initial yield of 7.22%. The 31,500-sf property is let to another subsidiary of the De Beers Group until March 2005, with a tenant's break option any time after December 2003. The current rent of £420,000 ($600,000) per annum reflects just £13.32 ($19) per sf.

Broker Charles Butters at Chesterton, who advised the vendor, said: 'At a low capital value and reversionary rental level, the building provides an excellent refurbishment opportunity in an area which is experiencing considerable redevelopment and regeneration.'

UBS Asset Management was advised by Tudor Toone.

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