Last checked at 21 Oct 2011 14:45
21 October 2011
Helical Bar plc ("Helical")
Helical acquires Corby Town Centre from Land Securities
in £70m transaction
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%.
The 25 acre freehold interest comprises:
·; 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.
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.
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).
Duncan Walker, Investment Director of Helical, said:
"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.
"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."
CBRE acted for Helical and Savills acted for Land Securities.
For further information, please contact:
Helical Bar plc
Duncan Walker
Tel: 020 7629 0113
FTI Consulting
Stephanie Highett/Dido Laurimore
Tel: 020 7831 3113