Helical Bar plc has sold its short leasehold interest in Rex House, Regent Street, London SW1 to the freeholders, The Crown Estate, for £34m.

The lease has 26 years remaining. Rex House provides approximately 91,000 sq ft of office accommodation fully let to Russell Systems, Robert Half, Right Management and LA Leisure. The sale price, reflecting an initial yield of 12%, is 8% below the last valuation carried out in March 2009. The net proceeds will 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 £22m, 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.”