Acquisition

RNS Number : 8503B

Helical Bar PLC

10 March 2014

 



10 March 2014

Helical Bar plc ("Helical Bar" or the "Company")

HELICAL BAR ACQUIRES MULTI-LET CENTRAL MANCHESTER OFFICE FOR £34 MILLION

Helical Bar today announces that, in an off market transaction, it has exchanged on the acquisition of Churchgate House and Lee House, two interlinked office buildings for a net consideration of £34 million from a joint venture between Angelo Gordon and Dunedin Property. The purchase price reflects a net initial yield of 5.7%. The transaction will be funded through a combination of cash and existing undrawn debt facilities.

Grade II listed Churchgate House and Lee House are located on Oxford Street, part of Manchester's central business area and provide circa 250,000 sq ft of multi-let office accommodation, at rents between £14.00 and £17.50 per sq ft. A number of tenants extended their leases over the last 18 months, however, there is currently circa 35% vacant providing Helical with opportunities to improve income through letting up space.

Duncan Walker, Investment Director at Helical Bar, commented:

"This is an exciting acquisition for Helical. Following the recently announced sale of Battersea Studios, we are very pleased to be able to quickly recycle the capital into a property where we see opportunity for good cash flow and capital growth. 

"Churchgate and Lee House represents a high quality, well located multi-let asset in a market that is starting to show the early signs of improving occupational demand underpinned by economic growth across the UK.

"We believe this asset lends itself well to the Helical model and track record of successfully repositioning and improving assets through intensive management. As such, through improvement of vacant floors and the continued refurbishment of the common parts, we will be able to offer quality accommodation at affordable rental levels that we hope will enable us to secure new lettings in the near term."

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For further information, please contact:

Helical Bar plc Tim Murphy / Duncan Walker	020 7629 0113
FTI Consulting Stephanie Highett / Dido Laurimore / Nina Legge	020 7831 3113

 

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