Helical to convert to a REIT

Helical has announced plans to convert into a REIT. The London office specialist said the change would come into effect on 1 April 2022. Chief executive Gerald Kaye said: “Helical’s business has evolved in recent years, from a developer/trader model, selling its development schemes to third-party funders, to become a developer of and investor in new or refurbished grade-A buildings that are retained for their capital growth and long-term income potential.” He added that the company’s portfolio – 85% of which is rated BREEAM Outstanding or Excellent – together with its long-term investment model, facilitate the conversion to a REIT. Helical said it would seek shareholder approval to replace its current articles of association to incorporate the necessary changes, and further details would be shared at a later date. Following conversion, Helical will be exempt from UK corporation tax on profit from its property activities. Kaye added that with the rate of UK corporation tax increasing from 19% to 25% from April 2023, “The time is now right for Helical to convert to a REIT.” In line with Helical’s current dividend policy, future dividends will continue to be paid out of EPRA earnings and realised capital profit. Dividends will comprise any property income distribution required to comply with the REIT legislation payable out of Helical’s net rental income and, if considered appropriate, a further dividend out of other sources of its income and profit. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews