Helical Bar has sold its short leasehold interest in Rex House, 4 -12 Regent Street, London SW1 to the freeholder, The Crown Estate, for a cash consideration of £34 mln (EUR 38.7 mln).

Rex House provides 8,450 m2 of office accommodation that is fully let to Russell Systems, Robert Half, Right Management and LA Leisure.

The sale price, reflecting an initial yield of 12%, on a head lease with 26 years remaining, is 8% below the last valuation carried out in March 2009.

Helical Bar said the net proceeds would be used to reduce bank loans and gearing.

Gerald Kaye, director of Helical, said: 'Following the acquisition of Rex House in 2000, and its subsequent redevelopment for a combined cost of £22 mln, we have enjoyed substantial rental cash flows. Our leasehold interest was declining in value as the unexpired term got shorter and we are happy to have sold this interest to the freeholder.'