Helical reports progress across its portfolio

22nd Apr 2024 08:42

(Sharecast News) - Helical updated the market on its trading from 8 January to 19 April on Monday, reporting a series of developments across its portfolio.

The London-listed firm said the JJ Mack Building, EC1, a premier office building comprising 200,611 square feet of office space and 5,439 square feet of ground floor retail, saw significant developments during the period.

Notably, the eighth floor, spanning 15,484 square feet, was leased to Three Crowns LLP, a leading international arbitration firm, at a premium to the March 2023 estimated rental value (ERV).

Additionally, two of the three ground floor retail units were let to Sainsbury's, with ongoing interest in the remaining office and retail space reported, while the fourth floor of 23,566 square feet and the ground floor office space of 7,128 square feet was currently under offer.

At The Bower, EC1, a landmark scheme featuring office and restaurant and retail space, progress was continuing with strategic leasing and management initiatives.

Following the forfeiture of leases with WeWork, leasing activities had gathered pace, include signing fresh leases with WeWork to allow them to service an existing customer, and entering into management agreements to provide serviced offices, resulting in increased occupancy rates.

Regarding operational performance, Helical reported strong rent collection, with 99% of all rent contracted and payable for the financial year to 31 March already collected.

Additionally, the company said it had exchanged contracts on the sale of the long leasehold interest in 25 Charterhouse Square, EC1, for £43.5m.

In terms of the development pipeline, notable projects included 100 New Bridge Street and 10 King William Street, both in London, with progress on planning approvals and construction preparations.

The company also announced changes to its non-executive board, welcoming Robert Fowlds and Amanda Aldridge as independent directors.

Aldridge was set to succeed Joe Lister as chair of the audit and risk committee, following his decision to resign from the board.

"We continue to build on the momentum since our last update in January with new leases signed at The JJ Mack Building and The Bower at values above 31 March 2023 ERVs, with further space under offer, while rent collection for the year remains robust at 99%," said chief executive officer Gerald Kaye.

"The sale of 25 Charterhouse Square, EC1, continues the recycling of equity from our investment portfolio.

"The proceeds will be used to reduce our borrowings in advance of us progressing our funding for the next stage of our development pipeline."

Kaye said that activity, coupled with wider market data points, provided further encouragement that the prime London office letting market was trending positively.

"We are looking ahead to the rest of year with cautious optimism as we progress the delivery of best-in-class office space into what is becoming an increasingly undersupplied market."

Helical said its full year results for the 12 months ended 31 March would be announced on 23 May.

Reporting by Josh White for Sharecast.com.