Helical positions for new acquisitions
Helical chief executive Gerald Kaye has said in a trading update that the London and Manchester-focused REIT has significantly increased its firepower to acquire new projects.
He said the sale of two office buildings at premiums to book value and a reduction in Helical’s LTV to below 30% had aided this, as well as a lengthening of the weighted average maturity profile of the firm’s secured loan facilities and a reduction in the average cost of this debt.
In a trading update for the period from 1 October 2018 to 28 March 2019, Helical reported that it had achieved practical completion on its Midtown scheme One Bartholomew, EC1, and Trinity in Manchester.
Helical chief executive Gerald Kaye has said in a trading update that the London and Manchester-focused REIT has significantly increased its firepower to acquire new projects.
[caption id="attachment_974202" align="aligncenter" width="847"] One Bartholomew, EC1[/caption]
He said the sale of two office buildings at premiums to book value and a reduction in Helical’s LTV to below 30% had aided this, as well as a lengthening of the weighted average maturity profile of the firm’s secured loan facilities and a reduction in the average cost of this debt.
In a trading update for the period from 1 October 2018 to 28 March 2019, Helical reported that it had achieved practical completion on its Midtown scheme One Bartholomew, EC1, and Trinity in Manchester.
In addition, practical completion has been achieved at the final buildings in the first phase of residential at Barts Square, EC1, and the sales of 14 units completed.
Helical said it had begun refurbishment works at 54 Bartholomew Close for 10,286 sq ft of offices, with delivery expected in September, while its Farringdon East scheme, EC1, has topped out and is on course to complete in December.
During the period Helical also let 101,793 sq ft of offices in London and 8,291 sq ft of restaurant space across the portfolio, delivering contracted rents of £7.61m, of which Helical’s share was £3.74m at 3.9% above 30 September 2018 ERVs.
This included two lettings at One Creechurch Place, which is now fully occupied, two lettings at the Tower, EC1, which is now 70% let, and a further six lettings totalling 19,274 sq ft, representing £1.1m of contacted rents of which Helical’s share is £900,000.
Four restaurants and shop lettings were also signed with the new tenants, including Wagamama at the Tower and Stem & Glory at Barts Square for contracted rents of £415,000, of which Helical’s share is £342,000 at 1.4% above 30 September 2018 ERVs.
In Manchester, four office lettings of 11,957 sq ft generated rental income of £283,000 at 7.4% above September 2018 ERVs.
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