Helical Bar Regulatory News (HLCL)

14 February 2013

Helical Bar plc ("Helical Bar" or the "Company" or the "Group")

MEETING MILESTONES

Helical Bar today announces its Interim Management Statement covering its activities for the period since 30 September 2012.

Highlights

·; Development programme continues to progress well with a resolution to grant planning permission achieved at our major mixed use scheme at Barts Square, London EC1, and significant lettings at the refurbished 200 Aldersgate, London EC1.

·; £60.75m acquisition, in joint venture with Crosstree Real Estate Partners, of 287,000 sq ft of office and retail space across four buildings at the Old Street Roundabout, London EC1. A major refurbishment will take place once planning consent is granted.

·; Contracted rents increased by c. £1.0m through acquisitions, new lettings and lease renewals after accounting for sales, lease expiries and tenant administrations.

·; Renewed £75m of bank facilities for an average of four years, with an additional £25m five year facility in solicitors' hands. At 31 January 2013 our share of gross debt of £336m has an average maturity of 3.2 years (30 September 2012: 2.5 years) and a weighted average rate of interest of 4.0%.

Commenting on the Company's activity, Michael Slade, Chief Executive, said:

"We have made sustained progress over the period towards meeting the milestones we set at the beginning of the financial year, which, in turn, will substantially contribute to the future profitability of the Company. Particularly pleasing is our success at Barts Square, where we received a resolution to grant planning consent in November which enables the regeneration of this area of the City, and we hope for a similar result at Brickfields, White City in the next few weeks."

Development Programme

·; At Barts Square, a joint venture with Baupost, we received a resolution to grant planning permission for a mixed use scheme on the St Bartholomew's Hospital site. The scheme, comprising c. 230,000 sq ft of office space and 215 high quality residential apartments in 17 buildings with retail space on the ground floor, allows for the extensive regeneration of the area and will create a new mixed use quarter in the City.

·; At 200 Aldersgate Street, London EC1, a recently refurbished 370,000 sq ft office development managed by Helical, we have let 73,000 sq ft of office and 9,000 sq ft of retail space since 30 September 2012. Since its re-launch in early 2011, we have let 210,000 sq ft of office, 9,000 sq ft of retail and 40,000 sq ft of basement space, the latter let to Virgin Active, in 18 separate lettings. Agreed rents range from c. £40 psf to £55 psf. Circa 140,000 sq ft of offices and 8,000 sq ft of retail space remains to be let with continuing interest shown by potential tenants.

·; Our development at Europa Centralna, Gliwice, Poland is nearing completion and this 720,000 sq ft shopping centre and retail park, built in joint venture with clients of Standard Life, will open on 1 March 2013. The scheme is over 75% let to a variety of major international and domestic retailers including Tesco, Castorama, Media Saturn, H&M, Deichmann and JULA.

·; At Brickfields, White City, London W12, in partnership with Aviva, we anticipate a planning committee hearing in March for our residential led mixed use scheme comprising 1,150 new homes, 210,000 sq ft of offices, 25,000 sq ft of retail and 35,000 sq ft of community and leisure uses.

·; At Parkgate, Shirley, in joint venture with Coltham Developments, construction continues to progress on an 85,000 sq ft food-store, pre-sold to Asda, 80,000 sq ft of retail and gym space, of which lettings of 37,500 sq ft are in solicitors hands, and 83 residential units, including 26 town houses.

Asset Management

·; During the four months to 31 January 2013, we completed 29 new lettings, increasing our contracted income by £431,000pa. We also completed 27 lease renewals securing a total contracted rent of £665,000pa, and two positive rent reviews, both in Cardiff, together increasing net income by £49,000pa. However, these gains were offset by a total reduction of £332,000 of annualised income through the loss of seven tenants due to lease expiries (£87,000 pa) and ten tenants entering administration (£245,000 pa). The net increase in contracted rents is £148,000. Nearly all of this activity is in our shopping centre portfolio.

·; We have no exposure to HMV, Jessops, Comet or Republic and only one Blockbuster unit (£51,500pa in Corby).

Purchases

·; In November we purchased four buildings, comprising 287,000 sq ft, on a 3.12 acre site adjacent to Old Street Roundabout, London EC1, in joint venture with Crosstree Real Estate Partners, for £60.75m. The purchase was funded with bank debt of £31m and cash from the joint venture in which Helical has a 33% interest. The buildings are currently let to multiple tenants generating c. £2.5m pa of net income. We plan to undertake asset management activity in the short term to improve income whilst we apply for a planning consent for a major refurbishment of the office space of c. 230,000 sq ft.

Sales of £7.8m at book value

·; Langlands Place Industrial Estate, East Kilbride, an industrial estate held as an investment property, was sold during the period for c. £4.8m reducing our industrial holdings to 195,000 sq ft valued at c. £12.5m.

·; At Bramshott Place, Liphook, since 30 September 2012 we have exchanged or completed on the sale of an additional six cottages and apartments in the retirement village. As at 31 January 2013, we had exchanged or completed on 108 units with a further 14 in solicitors' hands, out of a total of 151 units.

·; At Durrants Village, our retirement village located in Faygate near Horsham, we have reservations on 11 units out of a first phase of 36 units (including five show homes) which are currently under construction.

Financing

Our relationships with the major lending banks remain strong as we look to renew and extend existing facilities or agree new loans for acquisitions.

Since 30 September 2012 we have:

·; Renewed an investment facility for a further five years and increased it by £10m to a total of £52m.

·; Renewed three site holding and development facilities, totalling c. £23m, for between 18 months and three years.

·; Arranged a new £31m investment facility for our Old Street Roundabout acquisition in London, made in joint venture with Crosstree Real Estate Partners. The three year term of this facility is structured to coincide with our refurbishment plans for the buildings.

·; Received credit approval for a five year, £25m development facility for our retirement village development at Maudsley Park, Great Alne, Warwickshire.

At 31 January 2013 our share of net debt, including debt and cash held in joint ventures, was £309m, with an average maturity date for the debt of 3.2 years, an increase from 2.5 years at 30 September 2012, and a weighted average rate of interest of 4.0%. Of the borrowings, 48% is fixed at an average rate of 4.5%, with the remaining floating at an average rate of 3.5%. The Group has interest rate caps on £142m of debt protecting it against base rate rises up to an average of 4.3%.

·; Helical's investment facilities of £201m have an average maturity date of 3.6 years and a weighted average rate of interest of 4.0%.

·; The site holding and development facilities of £63m have an average maturity date of 1.9 years and a weighted average rate of interest of 3.7%.

·; Helical's share of bank facilities in joint ventures of £72m has an average maturity date of 2.4 years and a weighted average rate of interest of 4.3%.

For further information, please contact:

Helical Bar plc

Tel: 020 7629 0113

Michael Slade (Chief Executive)

Tim Murphy (Finance Director)

Address: 11-15 Farm Street, London W1J 5RS

Fax: 020 7408 1666

Website: www.helical.co.uk

FTI Consulting

Tel: 020 7831 3113

Stephanie Highett / Dido Laurimore / Daniel O'Donnell