Helical issues first update after REIT conversion
Helical has issued its first trading update since becoming a REIT earlier this month.
The developer, which converted into a REIT on 1 April, is drawing up plans for a complete refurbishment of 100 New Bridge Street, EC4. Helical bought the 167,000 sq ft office block for £160m in December.
Chief executive Gerald Kaye said: “The acquisition of 100 New Bridge Street has substantially increased the group’s development pipeline.”
Helical has issued its first trading update since becoming a REIT earlier this month.
The developer, which converted into a REIT on 1 April, is drawing up plans for a complete refurbishment of 100 New Bridge Street, EC4. Helical bought the 167,000 sq ft office block for £160m in December.
Chief executive Gerald Kaye said: “The acquisition of 100 New Bridge Street has substantially increased the group’s development pipeline.”
He added that a planning application would be made shortly for the refurbishment, including the replacement of the existing cladding and adding more floorspace. It is currently let for £7.3m pa to law firm Baker McKenzie, including the ground-floor shops. Helical intends to start work once the lease expires in December 2023.
Kaye said Helical would seek to provide a “best-in-class” building, maximising its ESG credentials and targeting BREEAM Outstanding and NABERS five-star ratings when complete in early 2025.
Kaye added that there were plenty more opportunities being added to the pipeline. “The group has identified additional potential schemes which are at varying stages of assessment and discussion and would bolster its development pipeline,” he said.
The firm also said its redevelopment of 33 Charterhouse Street, EC1, is on track for completion in September.
Helical completed nine new lettings between the beginning of October last year and the end of March. The lettings, for around 36,000 sq ft, have added £2m to the rent roll, with Helical taking £1.9m of that.
Helical has so far collected 93.4% of the March 2022 quarter rent, up from 82.8% at the same point last year. It anticipates it will, through agreed payment plans, have collected 99% by the end of June.
For the year, Helical said 95.2% of all rent had been paid. “Of the balance, 3.3% remains to be collected, following the end of the government’s general moratorium, via payment plans.” The remaining 1.5% has been written off.
As of 31 March, the group had around £18m of cash and £99m of undrawn loan facilities.
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