Commenting on the deal, Dermot Maguire, head of property investment with Jaguar said: "The prime location and specification of the property positions it ideally to benefit from the recent strong recovery in central London rents. Furthermore, yield contraction has significantly boosted the value. However, with the two main leases approaching just 10 years to break, having taken advice, it was decided prudent to realise the profit on this investment."

The company has now completed the purchase of a circa �98m office investment on the South Bank, near Waterloo station, called Becket House. Just across the Thames from the Houses of Parliament, Becket House is a prime 146,000sq ft building let to Ernst and Young for a further 19 years. Although adjacent to the West End, this location has traditionally seen rents at a discount to West End levels.

This gap has widened recently with prime South Bank rents of �45/�50 per square foot contrasting sharply with �75 in Victoria and over �100 in Mayfair. Consequently with a rental level of �36 per square foot, Becket House is well placed to benefit from substantial rental growth, particularly with some major new schemes planned in the immediate vicinity.

"This property, with over 19 years unexpired left on the lease to an undoubted tenant, we see as an ideal medium to long-term investment in a secure environment with excellent rental growth prospects, " says Maguire.

"Also, with prime office yields now close to 4%, we feel that Becket House represents good value at an initial yield of 4.56%, particularly in view of the timing of the next rent-review, which falls due in September 2009."