Helical sells 50pc stake in City redevelopment

20th May 2024 10:08

(Sharecast News) - Helical announced on Monday that it has sold a 50% stake in the redevelopment of 100 New Bridge Street, London EC4, to a vehicle led by Orion Capital Managers, for £55m on a preferred equity basis.

The London-listed firm said the joint venture arrangement aimed to transform the existing building into a sustainability-led office scheme.

It said the redevelopment project would refurbish the building, originally completed in 1992, using its existing structure and reusing materials.

The project would include new cladding and the addition of two extra floors, resulting in a net internal office space of 191,065 square feet across the first to 10th floors, and 3,592 square feet of retail space on the ground floor.

Helical said the redevelopment would also feature a prominent terrace of 4,400 square feet on the eighth floor, offering views of S. Paul's Cathedral and central London.

The joint venture had secured a development financing arrangement with NatWest and an institutional lender, with NatWest providing £50m of the total £155m facility.

Additionally, the venture had signed a building contract with Mace, and construction work had already started.

The project was scheduled for completion in March 2026.

Proceeds from the transaction would be used to fund Helical's ongoing development pipeline, the board said.

"We are pleased to be partnering with Orion Capital Managers on the development of this best-in-class, carbon friendly new building, to be completed in the first quarter of 2026 when we anticipate there will be a critical shortage of top quality office space in the City," said chief executive officer Gerald Kaye.

At 0914 BST, shares in Helical were up 0.19% at 234.95p.

Reporting by Josh White for Sharecast.com.