21 Oct 2011 14:45

21 October 2011
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Helical Bar plc ("Helical")
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Helical acquires Corby Town Centre from Land Securities
in £70m transaction
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Helical Bar plc has acquired the freehold interest in land and buildings in Corby Town Centre from Land Securities Group PLC for a total consideration of approximately £70m, reflecting an initial yield of circa 8%.
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The 25 acre freehold interest comprises:
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·; Willow Place, a new 175,000 sq ft shopping centre completed in 2007 and anchored by Primark and TK Maxx;
·; Corporation Street and surrounding areas, the 290,000 sq ft original Corby shopping centre with Iceland, Poundland, Peacocks and Wilkinsons as principal tenants;
·; Oasis Retail Park, 35,000 sq ft let to Argos, Dream, Farmfoods and Home Bargains;
·; A number of ancillary buildings and development land.
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The purchase will be funded by a combination of bank debt and existing cash held within the business and will enhance Helical's net rental income by circa £4.3m.
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Key asset management initiatives include:
·; the continued leasing of vacant space (currently at 7.5% by ERV) where seven new leases have been agreed in the last three months;
·; the conversion of a block to A3 use to create a leisure hub (this block already has A3 consent and is opposite the new civic centre of the town, where planning applications are lodged for a new cinema and hotel);
·; the extension of the Willow Place mall upon securing a pre-let; and
·; conversion of vacant upper parts to residential (subject to planning).
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Duncan Walker, Investment Director of Helical, said:
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"Corby is a strong town with a fast growing population and its retail offer dominates the catchment area. The assets we have acquired generate a strong cashflow and offer the potential to enhance value through an active programme of asset management.
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"This significant acquisition brings the total of assets bought by Helical during 2011 to over £185m and is in line with our stated focus of purchasing assets that, through the application of a range of initiatives, present clear opportunities to grow income and thereby drive increases in capital value over time."
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CBRE acted for Helical and Savills acted for Land Securities.
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For further information, please contact:
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Helical Bar plc
Duncan Walker
Tel: 020 7629 0113
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FTI Consulting
Stephanie Highett/Dido Laurimore
Tel: 020 7831 3113
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