Helical Bar Regulatory News (HLCL)

9 January 2024

HELICAL PLC

(?Helical? or the ?Company?)

Trading Update for the Period Since 1 October 2023

Helical today provides an update covering its trading activity for the period 1 October 2023 to 8 January 2024 ("the Period").

Commenting on the Company's activities, Gerald Kaye, Chief Executive, said:

"It is pleasing to see the positive asset management progress made over the last few weeks which has resulted in several significant lettings above the March 2023 ERVs completing across our high quality, central London portfolio. A key focus over the coming months is to build on this momentum with further letting progress."

The JJ Mack Building, EC1

The JJ Mack Building, EC1 is a best-in-class office building comprising 200,611 sq ft of office space across 11 floors, together with 5,439 sq ft of ground floor retail. As previously announced:

· In November 2023, the 13,408 sq ft ninth floor was let for 10 years to Corio Generation, a subsidiary of Macquarie Group, at a 2.3% premium to the March 2023 ERVs.

· In December 2023, the first, second and third floors, comprising 68,002 sq ft, were let to J. Sainsbury plc for its corporate headquarters, at a small premium to the March 2023 ERVs.

With the sixth and seventh floors, totalling 37,880 sq ft, previously let to Partners Group, the building is now 58% let with good interest being shown in the remaining space.

The Bower, EC1

The Bower, EC1 is a landmark scheme comprising 312,573 sq ft of office space across The Tower, The Warehouse and The Studio, together with 21,059 sq ft of restaurant and retail space.

· On 27 October 2023, following non-payment of rent for the September quarter, we exercised our right to forfeit the individual leases for six floors let to WeWork in The Tower. Subsequently, we entered into a short-term licence arrangement with them to re-occupy the space to 25 December 2023, following receipt of a fee equivalent to the whole of the September quarter's rent and service charge due under the terms of the previous contractual arrangements.

· Prior to the end of 2023, we:

- Signed a lease with WeWork to 30 May 2024 outside the Landlord and Tenant Act at the pre-existing rent on the third floor, to enable them to continue to meet their obligations to their customer Stripe.

- Let the 9,568 sq ft 14th floor to Incubeta, who are an existing tenant moving from the 16th floor, at a rent above the March 2023 ERVs.

- Signed a management agreement with InfinitSpace to provide serviced offices at the first and second floors at The Tower. InfinitSpace have subsequently signed six of the previous members of WeWork, comprising circa 90 desks and representing approximately half a floor of the building. A campaign to attract further members to the scheme has commenced.

Following these initiatives, The Tower is now 85% let, up from 62% following the forfeiture of the original WeWork leases, with good interest being shown in the remaining space from existing and potential new tenants. The Warehouse and The Studio are 100% let.

Continued Strong Rent Collection

As at 8 January 2024, we had collected 97.7% of the December quarter rent and expect to collect a further 0.9% via agreed payment plans, with the remaining 1.4% under discussion.

Interim Dividend

The Interim Dividend for the half year ended 30 September 2023 of 3.05p will be paid on 12 January 2024. The Property Income Distribution ("PID") will be 0.50p, with the balance of the Interim Dividend of 2.55p representing an additional ordinary dividend.

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