Last checked at 2 Sep 2009 11:48
2 September 2009
Helical Bar plc
HELICAL BAR SELLS REX HOUSE, LONDON SW1 FOR £34 MILLION
Helical Bar plc ("Helical" or the "Company") has sold its short leasehold interest in Rex House, 4 - 12 Regent Street, London SW1 to the freeholders, The Crown Estate, for a cash consideration of £34 million.
Rex House provides approximately 91,000 sq ft of office accommodation fully let to Russell Systems, Robert Half, Right Management and LA Leisure.
The sale price, reflecting an initial yield of 12%, on a head lease with 26 years remaining, is 8% below the last valuation carried out in March 2009. The net proceeds will be used to reduce bank loans and gearing.
Gerald Kaye, Director of Helical, said:
"Following the acquisition of Rex House in 2000, and its subsequent redevelopment for a combined cost of £22m, we have enjoyed substantial rental cash flows. Our leasehold interest was declining in value as the unexpired term got shorter and we are happy to have sold this interest to the freeholder."
James Cooksey, The Crown Estate, said;
"We are delighted to have made this acquisition which reinforces our stated strategy of focusing on our core holdings, The St James Estate and Regent Street Portfolio's. The investment generates an attractive income return following a period of successful lettings by Helical Bar plc."
Agents acting for The Crown Estate: BH2.
Ends
Enquiries:
Helical Bar plc
Tel: 020 7629 0113
Nigel McNair Scott
Financial Dynamics
Tel: 020 7831 3113
Stephanie Highett / Laurence Jones