Last checked at 13 Sep 2018 12:30
13 September 2018
HELICAL PLC
('Helical'/ 'the Company')
HELICAL SELLS THE SHEPHERDS BUILDING
Helical plc has exchanged contracts on the sale of The Shepherds Building in West London to Workspace Group PLC for £125.3m (£835 psf), representing a net initial yield of 4.8% rising to 5.1% on expiry of rent frees. The sale represents a 12.4% premium to 31 March 2018 book value.
In line with its strategy, the sale will allow Helical to recycle capital into new value-add and development opportunities, in pursuit of continued enhanced returns for shareholders. This sale follows Helical's recently completed business transformation which has resulted in a pure focus on high quality, design led office and mixed-use schemes in London and Manchester.
The Shepherds Building is a former Inland Revenue tax office on Rockley Road, London W14, and was acquired by Helical for £12.8m in 2000. This purchase was followed by a full refurbishment of the property and the addition of an extra floor. A further overhaul of the common parts was undertaken and a new entrance area was built in 2014. The 150,000 sq ft building has eight floors and is 99% let to 32 different occupiers with an average contracted rent of £45.60 psf. The disposal is expected to complete next month.
Gerald Kaye, Chief Executive of Helical, commented:
"We have enjoyed 18 strong years of ownership at The Shepherds Building. We took the decision to dispose of the asset as it will allow us to recycle our equity into new projects to create future profits."
For further information please contact:
Helical
Gerald Kaye/Tim Murphy/Tom Anderson
Tel: 020 7629 0113
www.helical.co.uk
@helicalplc
FTI Consulting
Dido Laurimore/Tom Gough/Richard Gotla
Tel: 020 3727 1000