TIDMHLCL
RNS Number : 5809U
Helical PLC
07 April 2021
7 April 2021
HELICAL PLC
("Helical" or the "Company")
Business & Trading Update for the Period Since 1 October
2020
Helical today provides a business and trading update for the
period 1 October 2020 to 31 March 2021 ("the Period") .
Commenting on the Company's activities, Gerald Kaye, Chief
Executive, said:
"There appears to be a growing sense of optimism that the easing
of the current restrictions by the Government will continue as
scheduled and that, over the next few months, businesses of all
types will resume operations in line with the "roadmap" that has
been outlined. It is to be hoped that there are no setbacks on this
return to normality.
"As part of this we expect to see the increasing reoccupation of
all our buildings by our tenants, supported and supplied by the
many local businesses that rely on this for their custom.
"In the meantime, the quality and appeal of the buildings in our
portfolio has been reconfirmed by the letting of space at rents
above ERV and the high rent collection achieved throughout the last
year. We were especially encouraged to agree a lease for the whole
of Kaleidoscope, EC1, the latest demonstration of our ability to
develop sustainable, technology enabled and service led buildings
that offer excellent connectivity and are aligned with the latest
ways of working."
Operational Performance
Rent collection
- We have collected 82.8% of the March 2021 quarter rents due to
date and anticipate, through further cash receipts from agreed
payment plans, to have collected between 91% and 95% by the end of
June 2021.
- We have now collected 92.9% of all rent contracted and payable
for the March, June, September and December 2020 quarters. Of the
balance, we have granted rent holidays on 4.9%, mainly to our
F&B tenants, leaving 2.2% which is subject to ongoing
discussions with tenants.
Lettings
- At Kaleidoscope, EC1, we have completed the letting of the
whole of the 88,581 sq ft office building to TikTok Information
Technologies UK Limited on a 15 year lease term. The tenant has a
break at year ten, and a market rent free period has been granted.
The letting achieved an annual rent of GBP7.6m, reflecting a 5.4%
premium to the 31 March 2020 ERV.
- We completed a further four lettings across our London
portfolio, totalling 5,179 sq ft, delivering contracted rent of
GBP0.3m in line with the 31 March 2020 ERV. After the Period end,
we completed a lease renewal with Stripe Payments at the Warehouse,
extending the lease by three years. The renewal contributes an
additional GBP0.1m to contracted rent and reflects a 4.7% premium
to the 31 March 2020 ERV.
- At Trinity, Manchester, we have let the third and fourth
floors to Kennedys Law LLP, the two fifth floor units to Tosca Debt
Capital LLP and Saffrey Champness LLP, and one of the ground floor
retail units. These lettings total 24,113 sq ft and deliver GBP0.7m
of contracted rent at a 4.1% premium to the 31 March 2020 ERV. The
lettings take the building to 41% let, with a further floor and
retail unit currently under offer, which would take it to 51%
let.
Sales
- In December 2020, we completed the sale of The Powerhouse
Portfolio, comprising The Tootal Buildings, 35 Dale Street and
Fourways in Manchester, to real estate funds managed by Pictet
Alternative Advisors, S.A. and XLB Property Limited. The disposal
price of GBP119m reflected a blended net initial yield of 5.2% on
the contracted rent and a blended capital value of GBP329 psf.
- At Barts Square, EC1, we completed the sale of one further
apartment in Phase One, leaving just one apartment available for
sale. In Phase Two, we completed the sale of five apartments and
have exchanged contracts for the sale of a further apartment,
leaving 27 apartments available for sale.
Developments
- At 33 Charterhouse Street, EC1, our 205,369 sq ft office
development in joint venture with AshbyCapital, construction work
is continuing as planned, with the basement and core now complete
and the steel frame progressed to level three. The development,
which in 2020 was awarded the UK's first BREEAM 2018 New
Construction "Outstanding" rating at the design stage, is due to
achieve practical completion in September 2022.
Sustainability
- In April 2021, we are publishing our "Designing for Net Zero"
guide, produced to aid our professional teams as they collaborate
with us to reduce carbon use in our development projects, from the
design and construction process through to operation and
occupation.
- In March 2021, our GBP139.8m loan with Allianz financing the
development of 33 Charterhouse Street, EC1, in joint venture with
AshbyCapital, was designated a "Green Loan", receiving an
"advanced" rating from its independent, third party verifiers.
- During the Period, we improved our GRESB rating from 2* and
63/100 to 3* and 76/100. In addition, our CDP rating improved from
C to A and our MSCI ESG score improved from AA to AAA.
Financing
At 31 March 2021, the Group held GBP82.1m of cash in short term
deposits available to deploy without restrictions and a further
GBP77.3m of sales proceeds and rent collected in bank accounts
available to service payments under its loan agreements. In
addition, the Group had GBP200m of undrawn loan and overdraft
facilities.
At 31 March 2021, the Group had drawn GBP341m of its GBP531m of
investment facilities. These borrowings have an average maturity of
3.3 years, which increases to 4.5 years on exercise of options to
extend the GBP400m RCF, and a weighted average interest cost of
3.3%.
In our joint ventures, we had drawn GBP9.4m of the GBP69.9m (our
share) facility with Allianz to develop 33 Charterhouse Street, EC1
and GBP11.6m (our share and fully drawn) with HSBC at Barts Square,
EC1.
Notice of Results
The Group confirms that it will announce its full year results
for the 12 months ended 31 March 2021 on Tuesday 25 May 2021. There
will be a presentation for analysts on the morning of the results,
for details of which please contact FTI Consulting.
For further information, please contact:
Helical plc
Gerald Kaye (CEO) Address: 5 Hanover Square, London
W1S 1HQ
Tim Murphy (Finance Director) Website: www.helical.co.uk
Tel: 020 7629 0113
FTI Consulting
Dido Laurimore/Richard Gotla Tel: 020 3727 1000 / schelical@fticonsulting.com
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