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(Alliance News) - Helical Group PLC on Friday said it had exchanged contracts for the sale of three Manchester office assets that comprise the Powerhouse Portfolio to Pictet Alternative Advisors SA and XLB Property Ltd for GBP119 million.
Helical said that "the disposal price of GBP119 million reflects a blended net initial yield of 5.2% on the contracted rent and a blended capital value of GBP329 per square feet."
The property development company added that "the net proceeds are at a marginal premium to the March and September 2020 book values and will be used for reinvestment into new opportunities and to repay debt."
Helical acquired The Tootal Buildings, 35 Dale Street and Fourways in March 2014, March 2015 and July 2018 respectively. The Tootal Buildings is fully let and delivers a total headline rent roll of GBP4.7 million. 35 Dale Street is 96% let and Fourways is currently 73% let, both of which deliver total headline rent rolls of around GBP1 million.
"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," said Property Director Matthew Bonning-Snook.
Shares in Helical were up 0.1% at 390.40 pence in London on Friday.
By Zoe Wickens; zoewickens@alliancenews.com
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