Last checked at 11 Jul 2008 07:00
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 the challenges presented by current market conditions.
The deterioration in the commercial and residential property markets has continued over the last three months, with resulting ongoing falls in values. As a property company holding assets in a declining market, Helical cannot be immune from the negative impact of this process.
However, the binding commitments entered into by the Company during the first quarter should deliver a higher level of development profits than secured during the whole of the last financial 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:
At Fieldgate Street, London E1, the 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, 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 £80m. Helical is now entitled to the first part of a substantial profit related fee, with the main payment due in the second half of the financial year when the final payment is made for the site.
At Scotts Road, Southall, the Company has just completed the 166,000 sq ft first phase of its industrial development with Chancerygate. 45,000 sq ft has already been sold for £7.9m with further sales under negotiation.
Sales of sites and buildings at Stockport and Hailsham have raised a further £2.6m.
Helical has completed its 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 sign next week, leaving just 6% of the new retail space vacant.
Cash receipts of £12.3m have arisen during the quarter from completions of forward sales of residential units at Cardiff and residential and retail units at C4.1 Milton Keynes.
Helical continues to make good progress in pre-letting its retail warehouse schemes in Poland which now total over 1 million 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 have delivered good progress in the year to date by continuing to apply our skills to a wide portfolio of activities. In particular, we continue to focus on our model of unlocking value in special situations to deliver relative outperformance in challenging market 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