Helical enters joint venture with Orion to redevelop City property

Mon, 20th May 2024 13:17

(Alliance News) - Helical PLC on Monday sold a 50% stake in a City property for GBP55 million to help fund its redevelopment.

The London-focused property developer said it had entered into a joint venture arrangement for the redevelopment of 100 New Bridge Street, London on a preferred equity basis with a vehicle led by Orion Capital Managers LLP.

Orion Capital Managers is a London-based European commercial real estate investment specialist.

Helical said the building, originally completed in 1992, will be comprehensively refurbished with new cladding and two additional floors.

Alongside, the joint venture, the parties entered into a development financing arrangement with NatWest Group PLC and an institutional lender, Helical said.

NatWest is providing GBP50 million of the GBP155 million facility, Helical commented. The joint venture has also signed a building contract with Mace.

Construction work has already commenced and the building is scheduled to complete in March 2026.

Proceeds will be used to fund Helical's ongoing development pipeline, the company stated.

Helical Chief Executive Gerald Kaye said: "We are pleased to be partnering with Orion Capital Managers on the development of this best-in-class, carbon friendly new building, to be completed in Q1 2026 when we anticipate there will be a critical shortage of top quality office space in the City."

Shares in Helical rose 1.5% to 238.00 pence in London on Monday.

By Jeremy Cutler, Alliance News reporter

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