HELICAL AGREES £48.5M SALE AT BARTS SQUARE

17 April 2020

HELICAL PLC

('Helical'/ 'the Company')

HELICAL AGREES £48.5M office investment sale at BARTS SQUARE

Helical is pleased to announce that its Joint Venture with The Baupost Group, L.L.C. has exchanged contracts on the sale of 90 Bartholomew Close, Barts Square, EC1 to La Francaise Real Estate Partners International (LF REPI), a pan-European investment business acting on behalf of a French collective real estate investment vehicle. The disposal price of £48.5m reflects a net initial yield of 3.92% (£1,594 per sq ft capital value). 

The recently completed six-storey building provides 24,013 sq ft of office space, as well as a 6,414 sq ft restaurant which is occupied by the award-winning LINO, all housed behind an attractive retained Victorian façade. The five office tenants span a range of industries including law, software design and business consultancy. The total headline rent roll of £2,031,224 per annum reflects an average of £76.26 per sq ft on the office accommodation.

Delivering BREEAM Excellent, bike storage and shower facilities, the property offers contemporary and stylish office space to businesses attracted to Barts Square's contrasting attributes of a new urban quarter together with its excellent connectivity.

La Française Real Estate Partners International, a La Française group member company, provides a complete investment management service in both direct and indirect real estate investments for a wide range of international clients across continental Europe, the UK and Asia. The company is a recognized specialist in core and core-plus real estate investment strategies throughout Europe.

Gerald Kaye, CEO, Helical, commented:

"Despite operating in a constrained environment, the timing of this sale reflects my firm belief that the attraction of good quality London real estate for international capital will continue. 90 Bartholomew Close is an integral part of the Barts Square estate as it forms a recognisable landmark 'gateway' to the newly created public realm and retail offering. We look forward to continuing working closely with LF REPI to ensure the estate goes from strength to strength."

Peter Balfour, Investment Director, LF REPI commented: "90 Bartholomew Close marks the milestone of our first acquisition in the UK on behalf of La Francaise funds and signifies the intention to grow our assets under management in the UK real estate market. We are pleased to have purchased a key building in Helical's Barts Square estate and anticipate good growth prospects associated with the completion of new developments nearby.  90 Bartholomew Close makes a good addition to our group's portfolio of €23 billion in assets under management."

The Helical/Baupost Joint Venture acquired the Barts site in 2011 and redeveloped the area in three phases.  Barts Square is a three-acre, mixed use development located between St Paul's and Smithfield. Comprising 236 high quality apartments, circa 250,000 sq ft of contemporary office space over three buildings and 10 retail and restaurant units, Barts Square is the creation of a genuine new urban quarter in this charming location. It is also a short walk from the new Farringdon East Elizabeth Line (Crossrail) station, due to open in 2021. Beautiful landscaping is complemented by a line-up of independent food and beverage operators.  

Helical was advised by Ingleby Trice and Fineman Ross. JLL acted for La Francaise Real Estate Partners International. 

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About Helical plc

Helical is a commercial property investment and development company listed on the main market of the London Stock Exchange. It focuses on the office markets of London and Manchester where it  aims to deliver market-leading returns by creating buildings for today's occupiers who demand more inspiring space with distinctive architectural detail, carefully curated public realm, state of the art amenities, high quality management and a flexible approach to leasing. As at 30 September 2019 its portfolio comprised 15 properties with a value of £901 million, of this 11 of the assets were located in London and four in Manchester.

For more information www.helical.co.uk 

About Baupost:

The Baupost Group is an investment manager with a long-term, value-oriented approach.  With offices in Boston and London, Baupost manages roughly $28 billion with a broad and flexible charter, investing in a wide range of asset classes, including public securities, private debt, real estate, and private equity.