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11 Jul 2008 07:00
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11 July 2008
Helical Bar plc ("Helical" / "Company")
Interim Management Statement for the first quarter to 30 June 2008
Helical Bar announces an encouraging start to its financial year, despite theΒ challenges presented by current market conditions.
The deterioration in the commercial and residential property marketsΒ has continuedΒ over the last three months, with resulting ongoingΒ falls in values. As a property company holding assets in a declining market, HelicalΒ cannot be immune from the negative impact of this process.Β
However, the binding commitments entered into byΒ the CompanyΒ during the first quarter should deliver a higher level of development profits than secured during the whole of the lastΒ financialΒ year provided completions occur as anticipated later in this financial year. This should continue to underpin Helical's relative outperformance of the property sector.
Key activity:
AtΒ Fieldgate Street,Β LondonΒ E1,Β theΒ Company has obtained planning consent for 350 student residential units and 14,000 sq ft of retail. Having acquired the site in the last financial year,Β contracts have been exchanged to sell the site to a student homes operator/developer with legal completion in 2009.
Following our work in partnership with landowners National Grid UK Pension Fund in promoting a 4.5 acre riverside industrial site at Nine Elms, London SW8 for a major residential-led regeneration scheme, the property has been sold to a Middle Eastern consortium for Β£80m. HelicalΒ is now entitled toΒ the first part of a substantial profit related fee,Β with the main payment due in the second half of the financial year when the final payment is made for the site.
AtΒ Scotts Road, Southall, the Company hasΒ just completed the 166,000 sq ft first phase ofΒ itsΒ industrial development with Chancerygate. 45,000 sq ft has already been sold for Β£7.9m with further sales under negotiation.Β
Sales of sites and buildings atΒ StockportΒ and Hailsham have raised a further Β£2.6m.
Helical hasΒ completedΒ itsΒ 160,000 sq ft refurbishment of the former David Morgan department store in Cardiff and added new lettings to Molton Brown and Shoon with a further unit due to signΒ next week,Β leaving just 6%Β of the new retail spaceΒ vacant.
Cash receipts of Β£12.3m have arisen during the quarter from completions of forward sales of residential units atΒ CardiffΒ and residential and retail units at C4.1Β Milton Keynes.
HelicalΒ continuesΒ to make good progress in pre-lettingΒ itsΒ retail warehouse schemes inΒ PolandΒ whichΒ nowΒ total over 1Β millionΒ sq ft of space. All three projects are now at least 50% pre-let.
Commenting on the Company's activity, Mike Slade, Chief Executive, said:
"We haveΒ delivered good progress in the year to date by continuing to applyΒ ourΒ skills to a wide portfolio of activities.Β In particular, we continue to focus on our model ofΒ unlocking value in special situations to deliver relative outperformance inΒ challengingΒ marketΒ conditions."
For further information, please contact:
Helical Bar
Mike Slade/Nigel McNair Scott
Tel: 020 7629 0113
Financial Dynamics
Stephanie Highett/Dido Laurimore/Laurence Jones
Tel: 020 7831 3113
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