New Star's ã1.5bn (â¬2bn) UK property fund, one of the largest open-ended funds in the country, has sold the London headquarters of Commerzbank for almost ã20m less than the original purchase price after real estate values continued to fall in January.
New Star sold 60 Gracechurch Street on Friday for £127.5m at a yield of 5.5%, after buying it in November 2006 for £146m at a yield of 4.76%. The firm made an income of £8m while it owned the property, meaning it has realised a loss of about £10.5m on the sale, or 7.2%.
