RE Acquisitions and Disposals

RNS Number : 9627T

Helical Bar PLC

24 July 2015

 

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

HELICAL BENEFITS FROM FURTHER PORTFOLIO RECYCLING WITH OVER £60 MILLION OF LOGISTICS TRANSACTIONS

Helical Bar announces six individual purchases and one portfolio sale of distribution and logistics assets, as it continues to rotate capital into high yielding investment opportunities.

Helical Bar has acquired six individual logistics warehouses for a total cost of £37.5m at a blended net initial yield of 7.8%. Totalling close to 700,000 sqft of space the units are 100% let. One of the assets, located in Stevenage, was initially acquired vacant but Helical was able to complete a new lease with DSG Retail between exchange and completion of the purchase. The other assets are located in Stone, Bristol and Alfreton.

Separately, Helical Bar has sold a portfolio of eight logistics assets to BMO Global Asset Management for £28.5m representing a net initial yield of 6.35%. Providing a total of 296,000 sq ft, the assets located in Barking, Maidenhead, Chichester, Gloucester, Gravesend, Milton Keynes, Northampton and Bedford had all been acquired over the last 12 months through various portfolio acquisitions and provided a good opportunity for the Company to recycle capital into higher yielding stock.

Following these transactions Helical's portfolio of logistics assets has grown to 33 assets and totals circa £200 million, representing c.17% of the Group's total investment portfolio.

Commenting, Duncan Walker, Investment Director at Helical Bar, said:

"We continue to see good opportunities in the distribution and logistics sectors which are being supported by improving levels of UK manufacturing and the move to e-commerce, whilst little new build stock is coming onto the market.  Helical will always look for opportunities to recycle capital out of assets and reinvest it into properties where we can use our skills to generate greater income and capital growth, which is clearly illustrated by the transactions we have announced today."

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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