AXA Real Estate Investment Managers has disposed of two properties with a total value of over £20 mln (EUR 23 mln) on behalf of its client, Friends Life Assurance Society Limited.

AXA Real Estate has sold 1-3 Sussex Place in Hammersmith, London, to The Notting Hill Housing Trust for £8 mln as well as the De Vere Village hotel and health club in Walsall, Birmingham, to Earlsky Limited for £12 mln, which reflects a net initial yield of 7%.

'The sale at Hammersmith enables us to take advantage of the current attractive market pricing for well located west London assets,' said James Owen, senior fund manager at AXA Real Estate. 'We were also able to crystallise the value from our hotel investment which benefits from a strong covenant on a long lease. We will use the proceeds from the sale to help fund a programme of value adding refurbishment opportunities we have identified within the rest of the portfolio.'

Capita Symonds and Colliers International acted for AXA Real Estate on Hammersmith and Knight Frank for the hotel disposal.