Acquisition

RNS Number : 4627T

Helical Bar PLC

06 October 2014

 



6 October 2014

Helical Bar plc ("Helical Bar" or the "Company")

HELICAL BAR ACQUIRES SAINSBURY'S REGIONAL DISTRIBUTION CENTRE IN BRISTOL

FOR £11.5 MILLION

Helical Bar today announces that it has acquired Sainsbury's regional distribution unit in Yate, Bristol from a private Irish investor for a total consideration of £11.5 million, reflecting a net initial yield of 10.1%. The acquisition was funded through the Company's existing cash resources.

The asset comprises a 255,714 sq ft self-contained distribution warehouse that was purpose built for Sainsbury's to act as its regional distribution centre for the South West. Situated on a 14 acre site on the Great Western Business Park, the asset benefits from its close proximity to both the M4 and M5 motorways.

Let to J Sainsbury plc, for a further 5.25 years, the asset produces an aggregate annual rental income of circa £1.25 million.

Duncan Walker, Investment Director at Helical Bar, commented:

"This is a high-quality, well-let and well-located distribution warehouse that provides us with future opportunities for asset management and clearly demonstrates our ability to continue to find investment opportunities in an increasingly competitive market. This asset will generate substantial surplus cashflows as we continue to deliver value from our lower yielding London properties."

Helical Bar was advised by Colliers International and the vendor was advised by DTZ.

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For further information, please contact:

Helical Bar plc Tim Murphy / Duncan Walker	020 7629 0113
FTI Consulting Stephanie Highett / Dido Laurimore / Nina Legge	020 3727 1000

 

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