Capital Recycling Across Portfolio

RNS Number : 9194I

Helical Bar PLC

31 March 2015

 

31 March 2015

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

HELICAL CONTINUES CAPITAL RECYCLING ACROSS PORTFOLIO

Helical Bar today announces a number of disposals and small asset acquisitions as it continues to take advantage of opportunities to recycle capital across its portfolio.

The Company has acquired circa £44.3m of new assets across a number of transactions.

The key details are:

·     Chart House, an office building in Shoreditch acquired for £6.3m, with planning consent in place to add an additional floor to the building. The Company intends to implement the consent upon getting vacant possession in 2018. The passing rent of the building is £14psf.   

·     Dale House, a 42,000 sq ft office building in Manchester's Northern Quarter.  The building is multi let to 12 tenants at a low average passing rent of £12 psf.  The price was £7.6m a 6.4% net initial yield. 

·     A retail warehouse unit in Great Yarmouth, let to Matalan for £4.75m, 7.75%. 

·     High yielding logistics and light manufacturing facilities acquired in four separate transactions: Havant for £3m a 7.5% yield; Hinckley for £9.5m, a 7.75% yield; Cannock for £5.1m a 7.75% yield. In addition it has acquired a unit in Stevenage for £5.65m, which has vacant possession.

In total the Company has sold circa £135.9m, since Christmas, which includes £113.5m (Helical share) from the sale of shopping centres in Corby and Clydebank. In total, the sales have been completed at an aggregate 6% premium to book value. The key details of recent transactions are:

·     An office in Uxbridge sold to Threadneedle Real Estate for £5.4m, a 6.5% yield

·     An office in Oldham for £2.15m sold to a private buyer

·     A portfolio of four properties to F&C Reit for £13.1m, including assets in Plymouth, Peterlee, Nottingham and Colchester.

Duncan Walker, Investment Director at Helical Bar commented:

"These recent purchases demonstrate our continuing ability to find value within the market, blending higher yielding income deals with more asset management intensive opportunities for capital gain. They also mark a significant fleet of foot between sectors, as demonstrated by our large investment into distribution and light manufacturing, as well as a movement into out of town retail assets. We are particularly pleased to have found another opportunity in London where we aim to have c.50% of the portfolio long term.  We are confident that we will be able to capitalise on further latent value."

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For further information, please contact:

Helical Bar plc Duncan Walker / Tim Murphy	020 7629 0113
FTI Consulting Dido Laurimore /Tom Gough/Clare Glynn	020 3727 1000

 

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