Helical Bar Regulatory News (HLCL)

23 May 2013

HELICAL BAR PLC

("Helical"/"Company"/"Group")

Preliminary Results

HELICAL'S SUCCESS - FROM EAST TO WEST

Financial Highlights

·; Total Property Return up 31% to £35.9m (2012: £27.5m)

- Group's share of net rental income up 7% to £24.5m (2012: £22.9m)

- Development profits of £7.0m (2012: £0.7m)

- Net gain on sale and revaluation of investment properties of £4.4m (2012: £3.9m)

·; Unleveraged return of property portfolio as measured by IPD of 8.6% compared to 3.9% for the benchmark index, Helical's highest return since 31 March 2007

·; Total Shareholder Return of 28.4% in the year to 31 March 2013

·; Profit before tax of £5.0m (2012: £7.4m)

·; Adjusted diluted EPRA earnings per share of 8.2p (2012: 3.8p)

·; Diluted EPRA net asset value per share up 5.6% to 264p (2012: 250p)

·; Group's share of property portfolio £626m (2012: £573m)

·; Ratio of net borrowings to value of property portfolio of 46% (2012: 49%)

·; Cash and undrawn bank facilities of over £80m

·; Final dividend proposed of 3.70p per share taking total dividends for the year to 5.55p (2012: 5.15p), up 8%

Operational Highlights

Investment Portfolio

·; Investment portfolio valuationincluding capex, sales and purchases, increased by 1.3% (2.1% on a like-for-like basis) during the year, comparing favourably to the IPD monthly index which fell -1.7% over the same period

·; Acquisition of 207-211 Old Street, London EC1, in joint venture with Crosstree for £60.8m

·; Like-for-like rents up £377,000. Increase driven by new lettings (£1,484,000) and rental increases (£378,000), more than compensating for losses from administrations and breaks/expiries

·; 70 new leases signed in the period, with 69% of rent retained at lease expiries and 86% retained at breaks

·; Vacancy by floor area fell to 5.7% from 8.8% in March 2012

Development Programme

·; Resolution to grant planning consent obtained at Brickfields, White City W12 for a c.1.5m sq ft mixed use scheme and contracts exchanged for the sale of the site

·; Planning consent obtained at Barts Square, London EC1, for a 450,000 sq ft mixed use scheme

·; 200,595 sq ft let at 200 Aldersgate, London EC1 since September 2012, increasing occupancy from 32% to 90%

·; Fulham Wharf, London SW6 sold during the period crystallising our additional profit share

·; Planning consent granted for a new 220,000 sq ft headquarters for Scottish Power in Glasgow

·; Sales of £29.5m of non-income producing development sites, including the Milton retirement village site (£6.9m) and part of the Exeter retirement village site (£7.6m)

Retail Developments

·; At Parkgate, Shirley, West Midlands an 80,000 sq ft Asda store is under construction and agreements reached to let 50% of the additional 78,000 sq ft retail/leisure

·; We have eight other proposed retail schemes at Milton Keynes, Evesham, Truro, Nottingham, Ross-on-Wye, Kingswinford, Leicester and Birmingham

Poland

·; Europa Centralna, Gliwice, a 66,300 sq m retail park and shopping centre, opened on 1 March 2013

·; Scheme now 80% let to Tesco, H&M, Castorama, Sports Direct and others

Chief Executive's Statement

Helical's strategy

It is worth restating the Company's strategy to re-emphasise our focus and differentiate ourselves from our peer group. We are a property investment and development company whose objective is to maximise shareholder returns by driving income, repositioning assets to deliver capital growth and generating substantial development gains employing limited amounts of our own equity. This simple strategy is once again starting to bear fruit and deliver industry outperformance.

• Our investment portfolio includes high yielding multi-let retail located throughout the UK and offices in central London. Through intensive property management we have been able to grow income and enhance capital values. An analysis of the properties we hold demonstrates how we have managed to circumvent the well documented pitfalls in the UK's retail sector to maintain positive rental returns. We can now look forward to capital growth for good quality secondary stock as those investors seeking better yields now move up the risk curve. The balance of our investment portfolio has increased its weighting towards central London office investments where we have concentrated our efforts over the last two years and where our main focus now lies.

• Having created stable positive income returns the Company is now able to progress with a number of new developments and refurbishments where by carrying out land assembly, planning and in some cases securing pre-letting or pre-funding, we can create significant returns with little capital or balance-sheet exposure. It should be noted that projects at 200 Aldersgate EC1, in partnership with the Deutsche Pfandbriefbank, and the Brickfields, White City W12 development, acting as development partner with Aviva Investors, have involved limited use of your Company's capital. We shall remain focussed on central London schemes for the length of the current market cycle.

• In previous reports I have referred to Helical Retail's success in securing a number of foodstore-led developments throughout the Midlands and the South East. Acting with our long standing partners at Oswin Developments, we have now optioned or have exclusivity over eight projects with further deals in the pipeline. Despite recent reports of retrenchment by the major foodstore companies, our outstanding relationships and reputation have enabled us to obtain sites in those areas still under-serviced and in demand from foodstore retailers. The projects will be pre-sold to investment partners.

• It would be wrong not to acknowledge our position as one of the UK's leading developers of retirement villages. These take the form of 150+ units set around a clubhouse in parkland settings for sale to those over 55 years of age. With the benefit of advantageous bank facilities, we have embarked on three new projects comprising of 467 units on sites near Horsham in Sussex, Stratford-upon-Avon in Warwickshire and Exeter in Devon. Success at Liphook (151 units), despite the challenges of the last five years, gives us the encouragement to continue with this specialist sector in partnership with Urban Renaissance Villages.

• We remain grateful to our supportive bankers who have proved ever-willing to respond positively and quickly to requests we put to them. This enables us to be quick to take advantage of opportunities that arise. You will note that we have successfully increased our banking facilities during the year, extending their maturity dates. This process will continue and we will look to further extend and diversify our sources of funding.

Our Market

Our path through the next three years becomes clearer by the day. We will maintain our high yielding investment portfolio and look to reinvest cash receipts from sales of our trading and development stock into accretive acquisitions with a strong emphasis on central London. I regard our successful investment in foodstore development and the retirement village business as valuable profit generators that sit beside our main focus on the opportunities we see in central London.

Overseas equity continues to be a vital element in today's property market. It is not and never has been our role to compete to invest in prime stock, but rather to use our expertise to create prime investments for sale into a strong market. We are confident that given the skills and experience we provide and the financial partners with whom we are involved, the next few years will see enhanced profits.

We believe that our market is now moving out of recession, albeit slowly. Much of the potential overhaul of bad bank debt is being taken out by globally financed debt acquisitions and vast sums of 'equity' continue to seek to invest in the UK, safe in the knowledge that we enjoy the 'rule of law' and a steady state economy.

Helical's Progress

We were delighted to announce last week the letting of 80,909 sq ft to FTI Consulting at 200 Aldersgate which triggers our entitlement to a profit share. In similar vein we have announced the sale of the Brickfields, White City project where we have acted as development partner on behalf of Aviva. Once this sale contract has been completed, we will be entitled to a profit share, the details of which we will be able to disclose at that time. We anticipate both the above transactions will create substantial profits to be recognised in the accounts for the year to 31 March 2014.

At Mitre Square, EC3, we have commenced demolition and, following granting of planning consent at Barts Square, EC1, we are preparing for development in January 2015. We are also hopeful of submitting a planning application in July for the Hammersmith Town Hall project in partnership with Grainger, and anticipate consent for our major refurbishment at 207-211 Old Street at "Silicon Roundabout" prior to the end of the year.

As has already been announced we have completed our major Polish retail development at Gliwice where we maintain a 50% interest with a pre-agreed take-out in approximately 18 months' time by our partner, clients of Standard Life.

Strategy and Performance

Investment strategy

The investment portfolio, which is mainly let and income producing, has two main purposes:

• To provide a steady income stream to cover overheads, dividends and interest;

• To produce above average capital growth over the cycle to contribute to growth in the Group's net asset value.

We seek to achieve these aims through the careful, disciplined selection of properties, generally comprising multi-let offices in London, shopping centres, industrial estates and mixed-use portfolios. Our key aim, when undertaking this selection process, is to seek to ensure that there is sustainable demand from potential occupiers for all of our assets.

We frequently refurbish and/or extend our properties. We also work closely with tenants with the aim of maintaining maximum occupancy in our portfolio properties. Our relationships with these tenants can lead to opportunities to increase value through re-gearing leases or moving tenants within a building as their respective businesses expand or contract.

Additionally, we may purchase entirely vacant buildings (such as the Morgan Quarter, Cardiff or Shepherds Building, London W14) with a view to carrying out a major refurbishment and, where we are confident that the occupational market is strong enough to allow the majority of the building to be let quickly.

Development strategy

We employ a wide variety of approaches to our development activities. The Group aims to limit the amount of equity that it deploys into development situations through a variety of different structures which are explained below. These aim to maximise the Group's share of profits in a development by leveraging the capital employed by the Group and with a view to managing the risks inherent in the development process.

• Participation in profit share situations where no equity investment is required, where we will seek to minimise our ongoing fee to maximise our profit share so that our interests are completely aligned with our partners. In this way, for minimal equity commitments, we can benefit from a significant profit share if we contribute to a project's success by using our skills and experience through the entire development process. This participation method was used in connection with our investments in the Fulham Wharf and 200 Aldersgate developments.

• Reduce up-front equity required by entering into conditional contracts or options. We have used this approach in the context of our Mitre Square development (where Helical has entered into conditional contracts) and our foodstore-led supermarket development programme (where land is optioned or put under contract conditional on achieving planning permission and pre-let to a supermarket operator) thereby mitigating the risks of the developments.

• Co-investment alongside a larger partner where we have a minority equity stake, where we will typically receive a "waterfall" payment subject to certain conditions being met. Such waterfall payments tend to be structured in a manner whereby we receive a greater profit share than our percentage investment depending upon the success of the project. This investment method is used in our investments in the Barts Square, Old Street and White City developments.

• Traditional forward funding, where the cost of the development overrun is one to be borne by the developer for a commensurate profit participation. In such a case, we have no equity in the property but underwrite a maximum build cost and which bears the risk of costs being in excess of an agreed maximum construction price.

Our risk strategy

Risk is an integral part of any Group's business activities and Helical's ability to identify, assess, monitor and manage each risk to which it is exposed is fundamental to its financial stability, current and future financial performance and reputation. As well as seeing changes in our internal and external environment as potential risks, we also see them as being opportunities which can drive performance.

Risk management starts at Board level where the Directors set the overall risk appetite of the Group and the individual risk policies. These risk policies are the framework used by Helical's management to run the business. Part of management's role is to act within these policies and to report to the Board on how these policies are being operated.

The Group's risk appetite and specific risk policies are continually assessed by the Board to ensure that they are appropriate and consistent with the Group's overall strategy and the external market conditions. The effectiveness of the Group's risk management strategy is reviewed annually by the Directors.

The risks faced by the Group do not change significantly from year to year but their importance and the Group's response to them vary in accordance with the changes in the internal and external environment. The Board considers not only the current situation but also potential future scenarios and how these might impact our business when setting the Group's policies.

Helical sees its principal uncertainties as falling within the following categories:

·; Market risks are risks specific to the economy as a whole and to the property sector. These include the UK economy falling in to recession again and falling property prices.

·; Strategic risk includes the risk that Helical's business strategy or capital structure results in the Group underperforming the rest of the property sector, or being unable to take advantage of opportunities that may arise. Helical's strategy is regularly discussed by the Board to ensure that it is appropriate.

·; Helical is also subject to a number of financial risks due to the way it is funded. These include the risk that interest rates rise, the risk that Helical does not have ability to access cash as it is required and the risk that the Group's lenders no longer wish to offer loans to it. These risks are carefully managed by arranging debt repayment dates to spread the maturity profile of bank loans over several years, seeking medium to long term debt, limiting the impact of potential interest rate rises through the use of interest rate swaps and caps, ensuring the availability of resources through the preparation of detailed medium and long term cash forecasts, retaining a significant level of cash or undrawn committed bank facilities and ensuring strong relationships are maintained with all the major real estate lenders.

·; Helical's continued success is reliant on our management and staff and successful relationships with our joint venture partners. People risks include the inability of Helical to find the right personnel to carry out our strategy. The retention and incentivisation of our staff is of great importance to Helical and executive remuneration packages are designed to attract, motivate and retain directors of the calibre necessary to maintain the Group's position as a market leader and to reward them for enhancing shareholder value and returns. We insist that our employees and joint venture partners act with both ethical and health & safety considerations at the forefront of their decision making processes.

·; The Group derives a significant part of its results from development activity. Development profits are more likely to be subject to fluctuation due to external factors as they are more opportunistic in nature. Development risks include: changes in planning legislation, difficulty in managing current developments and a scarcity in future development opportunities. Helical has an experienced development team with an excellent track record and a well established network of joint venture partners, contractors and professional advisors. Helical has no set formula for managing its developments and delivers development projects through a variety of means including using our own capital, bringing in joint venture partners and forward funding development projects.

The Board has ultimate responsibility for risk within the business. However, the small size of our team and our flat management structure allows the Executive Directors to have close contact with all aspects of the business and allows us to ensure that the identification and management of risks and opportunities is part of the mindset of all decision makers at Helical.

A more detailed analysis of these risks and what steps the Group takes to mitigate these risks can be found in appendix IlI.

Performance

A property company's share price should reflect growth in net assets per share. Our Group's main objective is to maximise growth in assets from increases in investment portfolio values and from retained earnings from other property related activities.

Key performance indicators and benchmarks

We incentivise management to outperform the Group's competitors by setting the right levels for performance indicators against which rewards are measured. We also design our remuneration packages to align management's interests with shareholders' aspirations. Key to this is the monitoring and reporting against identifiable performance targets and benchmarks. For a number of years we have reported on these, the most important of which are:

Investment Property Databank

The Investment Property Databank ("IPD") produces a number of independent benchmarks of property returns which are regarded asthe main industry indices.

IPD has compared the ungeared performance of Helical's total property portfolio against that of portfolios within IPD for the last 20 years. The Group's annual performance target is to exceed the top quartile of the IPD database. Helical's ungeared performance for the year to 31 March 2013 was 8.6% (2012: 5.6%) compared to the IPD median benchmark of 3.9% (2012: 6.4%) and upper quartile benchmark of 4.7% (2012: 7.0%).

The three years to 31 March 2013 was a period during which the Group continued to transform its property holdings and this has had an impact on performance in that period. However, over five, ten and twenty years the Group's property portfolio has consistently outperformed the IPD benchmark.

Net asset value

Net asset value per share represents the share of net assets attributable to each ordinary share. Whilst the basic and diluted net asset per share calculations provide a guide to performance, the property industry prefers to use an adjusted diluted net asset per share. The adjustments necessary to arrive at this figure are shown in note 29 to these results.

Management is incentivised to exceed 15% p.a. growth in net asset value per share. The diluted net asset value per share, excluding trading stock surplus, at 31 March 2013 was 217p (2012: 217p).

Including the surplus on valuation of trading and development stock, the diluted EPRA net asset value per share at 31 March 2013 was 264p (2012: 250p). Diluted EPRA triple net asset value per share was 259p (2012: 246p).

Other key performance indicators include:

• a surplus of net rental income over finance costs, overheadsand dividends;

• staff retention and average length of service; and

• inclusion in the FTSE4Good Index.

Helical Bar portfolio unleveraged returns to March 2013

Source: Investment Property Databank.

Total Gross Shareholder Return

1 Growth over 1 year, 3 years etc to 31/03/13.

2 Growth in FTSE All-Share Return Index over 1 year, 3 years etc to 31/03/13.

3 Growth in FTSE 350 Real Estate Super Sector Return Index over 1 year, 3 years, 5 years and 10 years to 31/03/13. For data prior to 30 September 1999 FTSE All Share Real Estate Sector Index has been used.

4 Growth in Total Return of IPD UK Monthly Index (All Property) over 1 year, 3 years etc to 31/03/13.

Investment Portfolio Overview

Our £407m investment portfolio provides income to cover all operational and finance costs and dividends. We have a strong focus on asset management, maximising net operating income and working closely with our tenants.

It is our aim to grow our investment portfolio from 71% now to 75% of our assets further increasing our net cash flow.

Our income stream is diverse and secure with no tenant accounting for more than 5.5% of the rent roll. Our average weighted unexpired lease term is 6.4 years.

The income stream has grown steadily since 2010 and is highly reversionary. The passing rent from our investment portfolio is £28.7m and the estimated rental value of our portfolio is £32.4m (Helical share). This reversionary income will be captured through letting vacant units and rent reviews. Through judicious buying of under-rented buildings in growth areas, securing lettings and undertaking refurbishments, we aim to generate substantial capital growth in our property values.

Investment Portfolio Statistics

The following refers to Helical's share of the investment portfolio.

Portfolio Yields

Valuation movements, portfolio weighting and changes to rental values

Note includes sales, purchases and capex.

Capital values, vacancy rates and unexpired lease terms

Lease expires or tenant break options

In the year to March 2013 we retained 69% of tenants who had a lease expiry. 86% of tenants who had break options did not exercise their breaks. This compares favourably to the industry average of 41% and 52% respectively.

Principal Investment Properties

Retail

Our strategy is to acquire multi-tenanted properties where there is significant opportunity to increase net operating income and capital values. In both our office and retail investments we acquire properties with rents which are low compared to equivalent buildings providing scope for rental growth and low total occupational costs. We spend a considerable amount of time talking to our tenants both prior to acquiring buildings, and during the course of our ownership to ensure that the space they occupy continues to be fit for their purpose. We continue to enjoy very strong cash on cash returns from many of our high yielding retail assets.

Corby Town Centre, Corby

This asset, comprising nearly 40 acres, is virtually the entirety of the commercial centre of Corby. It was acquired in 2011 and, since acquisition, 40 new leases or lease renewals have been concluded. Anchor tenants include Primark, TK Maxx, H&M, Argos and Wilkinsons. We enjoy cash on cash returns of 15.0% at Corby and through more than 40 new lettings and lease renewals have increased income since its acquisition.

The first phase of cosmetic refurbishment works has been completed, substantially improving the look and feel of the centre and driving strong letting interest.

Tenant performance remains good with both the Dreams and Blockbusters on the Oasis Retail Park being included in the package acquired by their respective new owners and remaining open for trade.

Significant projects are now planned to convert vacant upper parts of the town to residential with a planning application having been submitted for the first phase of these works.

The Morgan Quarter, Cardiff

Acquired empty in 2005 this asset was comprehensively refurbished and let to retailers including Urban Outfitters, TK Maxx and Molton Brown. During the year we let a unit to Jack Wills setting new zone A evidence of £175 psf. Since the opening of St Davids 2 in 2009, The Hayes has become one of Cardiff's principal retailing pitches. We have benefited from a number of new lettings and positive rent reviews increasing passing rent to £3.3m, continuing the progression towards an ERV of £4.2m. The rent reviews concluded in the year have shown a 25% rental growth from 2007 to 2012.

Clyde Shopping Centre, Clydebank

This asset, which comprises the majority of the town's retail offer, was acquired in 2010 in joint venture with a private investor. The Group has a 60 percent economic interest in the centre and undertakes all of the asset management activities. Since its acquisition, the rental income attributable to this asset has increased by 9% and more than 30 new lettings to tenants including The Post Office, Trespass, Watt Brothers and Poundworld have been concluded. Anchor tenants for the centre include Asda, BHS, Primark and Wilkinsons.

Otford Retail Park, Sevenoaks

The final lease renewal on this three unit retail park has been concluded with Carpetright meaning that all leases now have in excess of nine years term certain. This is the only retail park in Sevenoaks with an open A1 planning consent.

The Guineas, Newmarket

We have had strong tenant demand at our shopping centre in Newmarket and since the year end is now fully let for the first time in at least 10 years. The assignment of the Peacocks unit to Poundland has improved footfall and five other new lettings totalling £85,000 of rent have been concluded in the year.

Central London Offices

207-211 Old Street, EC1

This 3.12 acre asset was acquired in November 2012 for £60.8m in joint venture with Crosstree Real Estate Partners LLP (Helical interest 33.3%). The site is in the heart of "Tech City", an area of London which is a hub for technology, media and telecommunications companies and is benefitting from substantial investment in infrastructure.

Since acquisition, plans have been developed to substantially increase the amount of space, refurbish existing areas and significantly upgrade the public realm. A planning application has recently been submitted.

Whilst working on our refurbishment plans we are managing our existing tenant relationships on site to ensure a positive rental income.

Shepherds Building, Shepherds Bush, W14

This 151,000 sq ft multi-let office building close to Westfield Shopping Centre has enjoyed an occupancy of at least 96% for the last six years. There is currently just 2.6% vacant and rental growth prospects are strong. Average rent in the building is £24.25 psf with recent letting evidence in the locality from £27.50 to £30.00. ERV for the building stands at £4.2m compared to a passing rent of £3.6m.

We are planning to undertake a major refurbishment of the common parts of the building during the course of the year with a view to driving rental values forward.

Development Programme

In the year to 31 March 2013, profits from the Group's development programme of £7.7m (2012: £5.2m) were partially offset by provisions of £0.7m (2012: £4.5m) made against the carrying value of development stock, leaving net development profits of £7.0m, up from £0.7m in 2012. Looking at the individual schemes, profits of £6.1m were recognised in respect of our share of the result at Fulham Wharf, London SW6 and £1.4m was generated at our retirement village scheme at Bramshott Place, Liphook. At 200 Aldersgate, London EC1, we were able to recognise £1.0m of an additional management fee in addition to the development management fees of £0.25m. However, the sales of land at Stockport, Milton and Exeter and units at Hailsham for total sale proceeds of £19.6m, created a loss of £0.3m, mainly arising from sale expenses. In addition, we wrote off the overheads of our retail development programme in Poland and reduced the carrying value of the completed development at Wroclaw, pending renewal of leases in 2013, with a resulting charge of £1.7m from our Polish operations.

The focus of the Group over the last year has been on attaining the milestones set a year ago.

Central London

200 Aldersgate Street,London EC1 - www.200aldersgate.com

Helical was appointed asset and development manager by Deutsche Pfandbriefbank in May 2010. Our brief was to refurbish and let this office building, vacant since 2005 when the previous tenant, Clifford Chance, relocated to Canary Wharf. We have refreshed and re-clad parts of the building, creating a "vertical village" for office users comprising a variety of floor-plates to suit a range of different occupiers, as well as exceptional tenant facilities, including a concierge cycle store service, an on-site gym and a café and business lounge. Refurbishment works were completed and the building re-launched in January 2011.The building now comprises 348,000 sq ft of offices, 16,673 sq ft of retail and 39,601 sq ft of basement space. The refurbishment works were completed within budget in December 2010 and we have been seeking tenants for the vacant space since that date. By 31 March 2013 we had let 208,261 sq ft of office space, 9,000 sq ft of retail and the whole of the basement space to Virgin Active. Since then we have let 103,323 sq ft of space and have under offer a further 21,430 sq ft feet of offices and the remaining 7,673 sq ft of retail. This leaves just 14,714 sq ft of office space to let. Rents of £40 to £45 psf have been achieved on the larger floors (20,000 sq ft to 40,000 sq ft) and £50 to £55 psf on the smaller upper floors. Now the building is over 80% let, our right to receive a development management profit share is triggered. We anticipate receiving our profit share in 2013.

Mitre Square,London EC3 - www.mitresquareec3.com

Mitre Square is a landmark City office scheme in the heart of the insurance sector in London. We have signed agreements to purchase two adjoining sites from the City of London and SFL2 Limited (previously Ansbacher) and will complete the purchase of 1 Mitre Square in the Summer of 2013. The S.106 agreement, which enabled the planning permission to be issued, was signed in 2011. We have commenced the demolition of the existing buildings to facilitate the construction of a new building comprising offices of 273,000 sq ft NIA and 3,000 sq ft of retail/restaurant use. It is anticipated that construction will not commence until a substantial pre-let is agreed or a forward funding is obtained and the finished development will have a capital value of circa £250m.

West London

King Street,Hammersmith, London W6

We have a development agreement with the London Borough of Hammersmith & Fulham, in partnership with residential specialist Grainger plc, for the regeneration of the west end of King Street, Hammersmith. Despite obtaining a resolution to grant planning consent in November 2011, its referral to the Mayor was withdrawn pending further discussions with the Greater London Authority. We have revised our plans, following detailed consultation with interested parties, and intend submitting a new planning application in the summer of 2013.

Brickfields, White City, London W12 - (www.brickfieldsw12.com)

In joint venture with Aviva, we have obtained a resolution to grant planning permission for a residential led mixed use scheme on a 10 acre site immediately adjacent to White City underground station. The Eric Parry designed master plan comprises c. 1.25 million sq ft of residential, 210,000 sq ft of commercial and 60,000 sq ft of retail, leisure and community uses. In May 2013, contracts were exchanged for the sale of the site and completion is due in August 2013.

Fulham Wharf, London SW6

At Sands End, Fulham Wharf, on behalf of landowner Sainsbury's, we secured planning permission for a new 100,000 sq ft food store, together with 463 residential units (590,000 sq ft) and 11,000 sq ft of restaurant, retail and community use. In June 2012, the site was sold to a joint venture between housebuilder, Barratts, and London & Quadrant housing association. Construction of the first phase, consisting of the food store and 267 residential units has commenced. Helical received a fee of £1.5m in 2011 for obtaining planning permission for the scheme and has recognised a profit share from the sale of the site and will receive the cash as phased payments are made to Sainsbury's. In accordance with the Group's income recognition policies and IFRS, the Group has recognised this additional income in these accounts.

Out of London Offices

St Vincent Street, Glasgow

Helical, in partnership with local development partner, Dawn Developments Ltd, has been appointed development manager by Scottish Power for the construction of their new headquarters at St Vincent Street, Glasgow. The completed building will comprise 220,000 sq ft of prime office space in the heart of the city's commercial district. As part of the deal, Helical are taking on three existing Scottish Power sites which are surplus to their requirements. Planning permission has been granted and a start on site is expected later this year.

The Hub, Pacific Quay, Glasgow

The Hub, Pacific Quay, Glasgow was completed in 2009. This 60,000 sq ft building offers flexible office space with an onsite cafe and events area. Located in the midst of a media hotbed with BBC Scotland and STV as neighbours, this scheme has been partly let to The Digital Design Studio, the commercial arm of Glasgow School of Art, Shed Media and other high-tech, media-orientated tenants. The tenant demand has been strong this year and the building is now 81% let.

Retail

Parkgate, Shirley, West Midlands

At Parkgate Shirley, where we have a 50% interest, we continue to make good progress with the construction of an 80,000 sq ft Asda foodstore and 78,000 sq ft of retail and leisure accommodation, 50% of which is in solicitors' hands. The scheme is due to open for trade in April 2014. The private residential element of the scheme is under offer to a major housebuilder and the site for 51 Extracare units is being purchased by a local Housing Association.

Leisure Plaza, Milton Keynes

At Leisure Plaza, Milton Keynes, we have planning consent for 113,000 sq ft of retail together with the existing 65,000 sq ft ice rink. We are working with the various interested parties in this development to bring it forward with a view to starting construction later this year.

Evesham

A seven acre site has been secured in the Four Pools retail area in Evesham and a planning application is being worked up for a foodstore and discussions are in hand with potential operators.

Truro

In Truro, we have entered into a Conditional Purchase Agreement on the six acre Truro City Football Club site and a scheme is being put together to satisfy the requirement of a major foodstore operator. A planning application is likely to be submitted in the Autumn of this year. Proposals for a non-food 60,000 sq ft retail park on an adjoining site are also in hand.

Nottingham

We were delighted to be selected by Nottinghamshire County Council to be their development partner on an eight acre site at Hucknall, Nottingham where we will be progressing a foodstore scheme, which will act as a catalyst for major residential and employment developments to be promoted by the Council in due course. A planning application will be submitted once we have secured an operator for the foodstore later in the year.

Ross-on-Wye

At Ross-on-Wye we are seeking the change of use of a former DIY unit to enable a letting to a foodstore operator. The 30,000 sq ft building will be retained and converted following refurbishment.

Kingswinford

We are working with landowner, Ibstock, to develop a 16 acre site in Kingswinford for a foodstore and 100 residential units to be built out by a housebuilder following planning consent. A planning application is due to be submitted later in the year.

Leicester

In Leicester, terms have been agreed with corporate landowners to progress a foodstore development for a 70,000 sq ft store and petrol filling station.

Birmingham

In Birmingham we are reconfiguring the foodstore and non-food scheme in Tyseley to reflect changing retail operator requirements and in Stechford we are working up another foodstore site and we hope to be submitting a planning application in the Autumn.

We continue to work closely with the main food retailers with a view to satisfying their ongoing new store requirements. Whilst there is no doubt the heat has come out of the occupier market, their appetite for stores in key locations, where a quality proposal can be delivered, is likely to continue going forward.

Retirement Villages

A retirement village is a private residential community in which active over-55s are able to live independently in retirement. Residents have typically down-sized from a larger family home into a cottage or apartment which provides no maintenance or security issues.

With access to a central clubhouse containing a bar and restaurant facilities, health and fitness rooms and surrounded by maintained grounds, this retirement option is proving increasingly popular.

Bramshott Place, Liphook, Hampshire

The original Bramshott Place Village was an Elizabethan mansion built in 1580, although now only the original Grade II listed Tudor Gatehouse remains, which we have fully restored. The land and buildings were derelict when Helical acquired them in 2001. Changing planning from its previously designated employment use to a retirement village took several years but was eventually achieved in 2006.

The development of 151 cottages and apartments, and the new clubhouse, started in late 2007 and has proceeded in phases as units are sold. Construction of the final phase of 55 units completed in late 2012. To date, we have sold 115 units (£44.25m of proceeds) with reservations on a further 14 units, with just 22 units, mainly apartments, left to sell.

Durrants Village, Faygate, Horsham, West Sussex

Durrants Village, a 30 acre site, had operated as a sawmill with outside storage for many years. We were granted planning permission, at appeal, in May 2009 following a public inquiry where the Inspector allowed a development comprising a retirement village of 148 units, eight affordable housing units, a 50 bed residential care home and a central facilities clubhouse building. Following changes to the scheme the development will be for 171 units. The first phase (43 units) started in May 2012 for the construction of the retirement village and clubhouse and we have exchanged on one sale and have reservations on a further 16 units with up-field reservations on a further 13 units in future phases.

Maudslay Park, Great Alne, Warwickshire

This is a Green Belt site which has 320,000 sq ft of built footprint and benefits from Major Development Site planning policy. Measuring 82 acres this site received outline planning permission in April 2011 for a retirement village of 132 units plus 47 extra care units. Demolition and enabling works have completed with construction to follow in autumn 2013.

Millbrook Village, Exeter

This 19 acre site was acquired in 2007 from the St Loye's Foundation, a long established rehabilitation college in the city of Exeter. Resolution to grant planning permission was obtained in October 2009 for a retirement village of 206 units, a 50 bed residential care home, an affordable extra-care block of 50 units and a central facilities clubhouse building. Demolition, site clearance and archaeological survey work have been completed. In 2011 we received planning consent for 63 open market housing units on part of the site and sold this part in summer 2012. Construction of a retirement village and clubhouse in phases on the remainder of the site is expected to commence in summer 2013.

Ely Road, Milton, Cambridge

This 21 acre site was acquired from EDF in 2006 and was previously used as a training centre and depot. Located within the Green Belt, planning permission had been obtained for a retirement village of 101 units and a central facilities clubhouse building. In 2011, we received consent for 89 open market housing units and sold the whole site in summer 2012.