Helical updates on portfolio trading

By Paul Norman - Wednesday, October 04, 2017 7:49

Helical said it is confident its targets are continuing to be achieved as it updated on activities for the period from 13 July 2017 to 3 October 2017.

Gerald Kaye, chief executive, said: “We are pleased to report that we are close to concluding a number of lettings at our completed development at One Creechurch Place, EC3 and have placed further space under offer at 25 Charterhouse Square, EC1. We have seen rental growth at the London investment assets in our chosen locations where the demand for quality space from the tech and creative industries remains strong. We will shortly be seeking tenants for the remaining space at The Tower, comprising the second phase of The Bower, EC1, and are optimistic our target rents will be achieved.

“We continue working towards reducing our non-core holdings with the sale of further units from our retirement village portfolio whilst taking advantage of an offer from an owner-occupier to sell one of our industrial assets. In addition, where we have completed our business plans on assets and can deploy the proceeds elsewhere to generate superior returns, we will look to sell those assets.

“Whilst the political background continues to cause uncertainty we note the ongoing demand for UK assets from overseas investors, particularly from the Far East.”

Across the London portfolio at The Bower, Old Street, EC1 The Warehouse and The Studio are fully let with all tenants in occupation.

Construction works on The Tower continue as planned with the cladding of the building underway and completion due in July 2018. The Tower is 34% pre-let to WeWork and marketing of the remaining floors will commence shortly.

At Barts Square, EC1 in the first phase of 144 residential units we have exchanged contracts on 127 units and are due to complete on the sales of the first 13 of these units by the end of October 2017. The remaining units are due for completion in phases between November 2017 and March 2018.

Demolition of buildings to allow the last phase of residential has now completed with construction of 92 additional units due to start in Q2 2018.

90 Bartholomew Close, an office refurbishment of 23,508 sq ft, is due for completion in November 2017. The construction of One Bartholomew Close, a new 12 storey office building of c. 213,000 sq ft, pre-sold to clients of Ashby Capital, continues with completion due Q3 2018.

At One Creechurch Place, EC3 terms are agreed with a number of potential tenants interested in leasing space in the 273,000 sq ft building and it is hopeful of being able to announce the letting of a significant proportion of the building before our half year results are released in November.

At C-Space, EC1 it  has appointed agents to market the sale of the former carpet factory. The freehold building comprises 63,536 sq ft and is fully let to MullenLowe and NeuLion at an average rent of £57.42 psf with a WAULT of over 12 years.

At The Loom, E1 it has recently let 3,500 sq ft at a record rent for the building of £55 psf. Currently, there is 18,000 sq ft of vacant refurbished space available in six units.

At 25 Charterhouse Square, Smithfield, EC1 tenants Anomaly and Peakon are in occupation of the top three floors.  At Power Road Studios, W4 it is due to complete the refurbishments of Studio 1 in early October. The project delivers 16,000 sq ft of fully refurbished air-conditioned Cat A space (2,425 sq ft of which is pre-let with a further 6,000 sq ft under offer), refurbished common parts and two new lift shafts to accommodate the consented future roof extension of 13,000 sq ft. In addition, preliminary works have been completed on a consented new 30,000 sq ft office building.

in Manchester Churchgate and Lee House remain 100% let. The focus this year has been on future asset management opportunities where we can agree re-gears with existing tenants and actively take un-refurbished space back from tenants to push rents past the current ERV of £16.50 psf.

The refurbishment of 35 Dale Street continues to make good progress with 22,500 sq ft of office space now completed. 

In logistics  it has sold, to an owner-occupier, its 188,000 sq ft warehouse at Hinckley, Leicestershire for its 31 March 2017 book value of £9.3m. The portfolio now consists of 24 assets, comprising 2.7m sq ft.

During the period it completed a new ten year lease at the existing passing rent at Telford.

In non core at its retirement villages it has completed the refurbishment of the clubhouse at Bramshott Place, Liphook and have made good progress on the construction of new units. Of the 694 units to be built in the portfolio, it has completed works on 407 units, sold 328 and has a further 47 under offer.

pnorman@costar.co.uk

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