TIDMHLCL
RNS Number : 0592G
Helical PLC
20 November 2020
20 November 2020
HELICAL PLC
("Helical" or the "Group")
HELICAL AGREES GBP119M INVESTMENT SALE OF THREE MANCHESTER
OFFICE ASSETS
Helical plc announces that it has exchanged contracts on the
sale of The Powerhouse Portfolio, comprising three Manchester
office assets, to real estate funds managed by Pictet Alternative
Advisors, S.A. and XLB Property Limited, for a gross sale price of
GBP119m. The net proceeds are at a marginal premium to the March
2020 and September 2020 book values and will be used for
reinvestment into new opportunities and to repay debt.
The disposal price of GBP119m reflects a blended net initial
yield of 5.2% on the contracted rent and a blended capital value of
GBP329 per sq ft.
The Powerhouse Portfolio
The Tootal Buildings comprise two iconic Grade II listed
interlinked office buildings providing 245,907 sq ft of office
space. Helical acquired the asset in March 2014 and has undertaken
a rolling programme to refurbish the vacant office space and
improve the common areas, including the provision of a new café
facility and revitalised reception areas. The building is currently
100% let delivering a total headline rent roll of c.GBP4.7m.
35 Dale Street is a Grade II listed building situated in the
heart of Manchester's Northern Quarter. The building provides circa
49,130 sq ft of office space, as well as 7,079 sq ft of F&B
space. Helical acquired the asset in March 2015. The building has
undergone a full refurbishment and is currently 96% let delivering
a total headline rent roll of c.GBP1m.
Fourways is a Grade II listed former packing warehouse located
adjacent to 35 Dale Street in the Northern Quarter. The asset,
acquired in July 2018, has just recently been subject to a
refurbishment programme, which involved upgrading vacant office
space and repositioning the central atrium and external elevations.
The building provides 48,402 sq ft of office space as well as
11,607 sq ft of F&B Space. The building is currently 73% let
delivering a total headline rent roll of c.GBP1m.
Matthew Bonning-Snook, Helical's Property Director, commented :
"Having carried out significant enhancement of these assets during
our period of ownership we feel the time is right to re-cycle the
equity into new opportunities with our focus being on our core
Central London market."
Charlie Baigler, Head of Acquisitions, Real Estate at Pictet
Alternative Advisors, said: "This is a landmark purchase for the
investment strategy of Pictet Alternative Advisors. The Manchester
office market has proven to be extremely resilient, with excellent
supply and demand fundamentals. Manchester is attracting and
retaining talented young professionals, the city is now the largest
tech hub in the UK outside of London and is proving to be a
significant beneficiary of 'northshoring'. The quality and location
of the assets ensures strong downside protection against the
anticipated market volatility ahead. Our partnership with XLB
Property ensures the highest standards in technology enabled
property management, with a strong focus on ESG."
Helical plc was advised jointly by TT&G Partners and CBRE.
Pictet Alternative Advisors was advised by Acre Capital Real
Estate.
For further information, please contact:
Helical plc 020 7629 0113
Matthew Bonning-Snook (Property Director)
Tim Murphy (Finance Director)
Address: 5 Hanover Square, London W1S
1HQ
Website: www.helical.co.uk
Twitter: @helicalplc
FTI Consulting 020 3727 1000
Dido Laurimore/ Richard Gotla
schelical@fticonsulting.com
Notes to editors:
Pictet Alternative Advisors
Pictet Alternative Advisors (PAA) is a separate entity within
the Pictet Group responsible for investments in hedge funds,
private equity and real estate. PAA employs close to 100
alternative investment specialists and manages USD 31 billion, with
USD 9.6 billion in hedge funds, USD 16.9 billion in private equity
and USD 4.5 billion in real estate (as at end of September
2020).
The Pictet Group
The Pictet Group is a partnership of seven owner-managers, with
principles of succession and transmission of ownership that have
remained unchanged since foundation in 1805. It offers only wealth
management, asset management, alternative investments, and related
asset services. The Group does not engage in investment banking,
nor does it extend commercial loans. With USD 624 (CHF 574/EUR
532/GBP 483) billion in assets under management or custody at 30th
September 2020, Pictet is today one of the leading Europe-based
independent wealth and asset managers.
Headquartered in Geneva, Switzerland and founded there, Pictet
today employs over 4,600 people. It has 30 offices in: Amsterdam,
Barcelona, Basel, Brussels, Dubai, Frankfurt, Geneva, Hong Kong,
Lausanne, London, Luxembourg, Madrid, Milan, Monaco, Montreal,
Munich, Nassau, New York, Osaka, Paris, Rome, Shanghai, Singapore,
Stuttgart, Taipei, Tel Aviv, Tokyo, Turin, Verona and Zurich.
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