Update on Portfolio Activity

 

Following a period of good progress across its London and Regional assets, Helical is today providing an update covering its activities for the period from 25 July 2016 to 26 September 2016.

Commenting on the Company's activities, Gerald Kaye, Chief Executive, said:

"The delivery phase of our development programme continues with completion of our 272,000 sq ft office scheme at One Creechurch Place, London EC3 fast approaching and good progress being made on our London schemes at Barts Square EC1, The Bower EC1, 25 Charterhouse Square EC1 and The Loom E1. There is an encouraging level of interest being shown by potential occupiers of the offices and buyers of the residential units at these schemes.

"In our regional portfolio we have now sold five of our eight out-of-town retail warehouses. In addition, we have sold two of our regional offices and two of our distribution warehouses following the conclusion of asset management initiatives for these properties."

LONDON PORTFOLIO

Our London portfolio provides rental income, opportunities for capital growth and development profits.

The Bower, Old Street, EC1

 

At The Bower:-

 

·      The Phase 2 demolition works are approaching completion and the main contractor, Skanska, is due to commence shortly with PC scheduled for Q2 2018. A letting campaign for the building is expected to be launched in early 2018.

·      The Warehouse and The Studio are fully let with all tenants now in occupation.

Barts Square, EC1

 

At Barts Square:-

 

·      Since the EU referendum we have exchanged contracts on two residential units and placed a further unit under offer for a combined sales value of c. £4.0m at an average price of £1,547 psf, in line with sales values achieved for similar units.

·      We have now exchanged contracts on 106 residential units in the first phase of the development comprising 144 units, for a total sales value of £135.7m at an average of £1,581 psf. Completion of the first phase is due on a rolling basis during H2 2017.

·      Demolition of the buildings comprising the site for the remaining residential scheme of 92 units is due to start in November this year.

·      Demolition of the site at One Bartholomew Close, a 213,000 sq ft office scheme funded by clients of Ashby Capital LLP, has completed and piling works for the new building are under way.

 

 

One Creechurch Place, EC3

 

At One Creechurch Place:-

 

·      Practical completion is expected in October for this 272,000 sq ft new office building, being built in joint venture with HOOPP (Healthcare of Ontario Pension Plan).

·      The completed building is due to be launched in November and a number of potential tenants are currently showing interest in the building.

 

25 Charterhouse Square, EC1

 

At 25 Charterhouse Square:-

 

·      Refurbishment works continue and we are due to complete in Q1 2017.

·      The repositioned building will comprise c. 38,500 sq ft of office space and 5,100 sq ft of retail/restaurant use.

 

Fulham Wharf, SW6

 

At Fulham Wharf:-

 

·      We have received the final £1.5m of our £7.25m profit share following the completion of this residential scheme.

 

The Loom, Whitechapel, E1

 

·      The main refurbishment works completed in August 2016 with c. 58,000 sq ft of a total 110,000 sq ft comprehensively refurbished since acquisition together with all essential plant, equipment and common parts.

·      Average contracted rent at the building is c. £31 psf with highest rent achieved of £54 psf. 32,500 sq ft is currently available, with 4,750 sq ft under offer.

 

REGIONAL PORTFOLIO

Our regional portfolio provides significant cash flow for the Company. We have a broad spread of income providing diversity between tenants and sectors of the market.

 

Industrial 

 

·      We have sold one of our industrial buildings for £2.6m, at a premium to its 31 March 2016 book value of 8.3%.

·      We have let our 93,000 sq ft warehouse at Burton upon Trent on a 15 year lease at rents 12% above the previous passing rent.

·      We now have an occupancy level of 97% in our industrial portfolio of 34 buildings with just one vacant unit.

 

Offices

 

·      At Churchgate and Lee House, Manchester, we have completed two leases on a total of 23,000 sq ft and agreed terms on a further 16,500 sq ft. If completed, the building will be 100% let.

·      At Booth Street, Manchester, we anticipate completion of the refurbishment works in December with a launch of the building in January 2017.

 

Retail 

 

·      We completed on the sale of four retail assets and have now sold five of our eight out of town retail warehouses for a combined £42.1m, at a total discount of 4.2% to their 31 March 2016 book value.

·      At the Morgan Quarter, Cardiff we have continued with asset management initiatives at this multi-tenanted retail asset. We have completed 10 new leases securing £197,000 of income, four renewed leases securing £146,000 of income and have two reversionary leases in solicitors' hands.

·      Our £36m out of town retail development at Cortonwood Shopping Park, funded by clients of Aberdeen Asset Management, is under construction. The scheme, which is 95% pre let to H&M, New Look, River Island, Marks & Spencer and others, is due to complete in June 2017.

 

Retirement Villages

 

·      The retirement villages at Bramshott Place, Liphook; Durrants Village, Faygate; and Millbrook Village, Exeter have continued to perform strongly. We have completed on sales of 40 units since 1 April 2016 with a further three exchanged for a total sales value of £17.7m, with 55 units reserved at the three sites for a total sales value of £25.1m.

·      We have completed on the sale of Penally Farm, Liphook, for £1.7m and exchanged on the sale of land to a care home operator for £2.5m, with completion due in Q4 2016.

 

For further information, please contact:

 

Helical plc Gerald Kaye (Chief Executive) Tim Murphy (Finance Director)   Address:   5 Hanover Square, London W1S 1HQ Fax:           020 7408 1666 Website:   www.helical.co.uk	Tel: 020 7629 0113
FTI Consulting Dido Laurimore/Tom Gough/Richard Gotla/Clare Glynn	Tel: 020 3727 1000