The proceeds will be used to fund working capital and debt reduction as Kier Group strives to restore its balance sheet.
Kier Property and Investec sold the 7-storey Kings House office in Hammersmith to Catalyst Capital, reflecting a net initial yield of around 6%.
The partners purchased Kings House from Haymarket Media Group six years ago and built a 58,000 sq ft award-winning office
Phil Sutton, senior development director at Kier Property, said: “We have been delighted by the performance of this well-positioned development and continue to look for new opportunities to expand on our existing and identified pipeline of £1.5 billion GDV.”
Last month Kier reavealed it has suffered a £245m loss in the year to June 2019, after kitchen sinking a bundle of impairments, write-downs and restructuring costs.
Over the year average month-end net debt increased to £422m from £375m a year ago.
Andrew Davies, chief executive, said that he expected to reduce the capital invested in property from around £184m to £100m by the end of this new financial year as part of the debt reduction programme.
