News: MLIM sells Strand Island amid fears for market.(Merrill Lynch Investment Managers sells office block)(Brief Article)

Pensions Week, January, 2003

Merrill Lynch Property Fund has sold its largest asset - a London office block - for GBP66m as concerns of cental London offices continue.

The Strand Island office block was sold to clients of property consultant Baring, Houston & Saunders.

Ian Mason, head of real estate at Merrill Lynch Investment Managers (MLIM), said: "This latest sale reflects our growing concerns about occupier demand for central London offices, but as the price achieved was equal to its valuation at the peak of the market, it shows that some investors are prepared to bid competitively for what they want.

"Our concern was that in a falling occupier market, 50% of the income was secured on a single lease with only eight years to run."

The cash raised will be used...

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