Helical sells three Manchester offices for £119m

20 November 2020

Helical plc announces that it has exchanged contracts on the sale of The Powerhouse Portfolio, comprising three Manchester office assets, to real estate funds managed by Pictet Alternative Advisors, S.A. and XLB Property Limited, for a gross sale price of £119m. The net proceeds are at a marginal premium to the March 2020 and September 2020 book values and will be used for reinvestment into new opportunities and to repay debt.

The disposal price of £119m reflects a blended net initial yield of 5.2% on the contracted rent and a blended capital value of £329 per sq ft.

The Powerhouse Portfolio

The Tootal Buildings comprise two iconic Grade II listed interlinked office buildings providing 245,907 sq ft of office space. Helical acquired the asset in March 2014 and has undertaken a rolling programme to refurbish the vacant office space and improve the common areas, including the provision of a new café facility and revitalised reception areas. The building is currently 100% let delivering a total headline rent roll of c.£4.7m.

35 Dale Street is a Grade II listed building situated in the heart of Manchester's Northern Quarter. The building provides circa 49,130 sq ft of office space, as well as 7,079 sq ft of F&B space. Helical acquired the asset in March 2015. The building has undergone a full refurbishment and is currently 96% let delivering a total headline rent roll of c.£1m.

Fourways is a Grade II listed former packing warehouse located adjacent to 35 Dale Street in the Northern Quarter. The asset, acquired in July 2018, has just recently been subject to a refurbishment programme, which involved upgrading vacant office space and repositioning the central atrium and external elevations. The building provides 48,402 sq ft of office space as well as 11,607 sq ft of F&B Space. The building is currently 73% let delivering a total headline rent roll of c.£1m.

Matthew Bonning-Snook, Helical's Property Director, commented: "Having carried out significant enhancement of these assets during our period of ownership we feel the time is right to re-cycle the equity into new opportunities with our focus being on our core Central London market."

Charlie Baigler, Head of Acquisitions, Real Estate at Pictet Alternative Advisors, said: "This is a landmark purchase for the investment strategy of Pictet Alternative Advisors. The Manchester office market has proven to be extremely resilient, with excellent supply and demand fundamentals. Manchester is attracting and retaining talented young professionals, the city is now the largest tech hub in the UK outside of London and is proving to be a significant beneficiary of 'northshoring'.  The quality and location of the assets ensures strong downside protection against the anticipated market volatility ahead. Our partnership with XLB Property ensures the highest standards in technology enabled property management, with a strong focus on ESG."

Helical plc was advised jointly by TT&G Partners and CBRE. Pictet Alternative Advisors was advised by Acre Capital Real Estate.

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Notes to editors:

Pictet Alternative Advisors

Pictet Alternative Advisors (PAA) is a separate entity within the Pictet Group responsible for investments in hedge funds, private equity and real estate. PAA employs close to 100 alternative investment specialists and manages USD 31 billion, with USD 9.6 billion in hedge funds, USD 16.9 billion in private equity and USD 4.5 billion in real estate (as at end of September 2020).

The Pictet Group

The Pictet Group is a partnership of seven owner-managers, with principles of succession and transmission of ownership that have remained unchanged since foundation in 1805. It offers only wealth management, asset management, alternative investments, and related asset services. The Group does not engage in investment banking, nor does it extend commercial loans. With USD 624 (CHF 574/EUR 532/GBP 483) billion in assets under management or custody at 30th September 2020, Pictet is today one of the leading Europe-based independent wealth and asset managers.

Headquartered in Geneva, Switzerland and founded there, Pictet today employs over 4,600 people. It has 30 offices in: Amsterdam, Barcelona, Basel, Brussels, Dubai, Frankfurt, Geneva, Hong Kong, Lausanne, London, Luxembourg, Madrid, Milan, Monaco, Montreal, Munich, Nassau, New York, Osaka, Paris, Rome, Shanghai, Singapore, Stuttgart, Taipei, Tel Aviv, Tokyo, Turin, Verona and Zurich.