Last checked at 25 Jul 2013 14:31
25 July 2013
Helical Bar plc ("Helical" or "Helical Bar")
HELICAL COMPLETES ACQUISITION OF "TECH BELT" OFFICE
Helical Bar today announces that it has completed the acquisition of New Loom House, a multi-let office building on the eastern edge of the City in Whitechapel, London E1 for circa £35 million, from a UK based private company. The transaction represents a net initial yield of just under 5%. The acquisition will be funded from existing resources.
New Loom House is a multi-let, listed Victorian 'warehouse' style office building that provides 112,000 sq ft of office and storage space over five floors. There are 67 lettable units providing between 1,000 sq ft and 5,500 sq ft of space each, which currently generate annual rents of £1.75 million per annum. 11 units are currently vacant providing opportunities to grow the rental income further.
Helical will undertake a comprehensive, phased refurbishment of the building to re-position it so that it appeals to occupiers from the creative industries prevalent in the increasingly popular "Tech Belt" that runs from Old Street through Shoreditch and down to Whitechapel.
The area surrounding New Loom House is set to benefit over time from significant local residential development, as well as the delivery of Crossrail to Whitechapel in 2017.
Jack Pitman, Investment Director at Helical Bar said: "This is an exciting purchase, consistent with our strategy of acquiring assets in the Villages around Central London where rents are low and where we can add significant value through asset management. The average rent in the building is just over £18psf and there should be considerable rental growth from this low base as we improve the building and as the surrounding area continues to undergo regeneration.
"This purchase, together with the recent £17.5 million acquisition in Shoreditch and others in solicitors' hands, allows us to reinvest some of the capital we have recently recycled from sales and the £80 million retail bond issued to diversify funding sources. This is further evidence of the momentum behind our business."
Pilcher Hershman advised Helical Bar and CBRE and Richard Susskind & Co advised the vendor.
-ENDS-
For further information:
Helical Bar plc Jack Pitman
| 020 7629 0113 |
FTI Consulting Dido Laurimore Stephanie Highett Nina Legge
| 020 7831 3113 |