13th Jan 2015 09:14
LONDON (Alliance News) - Helical Bar PLC Tuesday said it has exchanged contracts to purchase a new long leasehold interest in 23 - 28 Charterhouse Square in central London from the Governors of Sutton's Hospital in Charterhouse.
According to the property investment and development company, the purchase follows Charterhouse obtaining the early surrender of the existing long lease to Royal Bank of Scotland.
Helical is paying GBP16 million for the new 155 year lease and said Charterhouse "will benefit" from a ground rent based on the rental income received.
The company said it is planning to carry out a major refurbishment of the existing building, as it intends to increase the floor area.
RBS is due to vacate the property at the end of the year, Helical Bar said, meaning it will be able to start on site with a view to completion in the first quarter of 2017.
Charterhouse is planning a major upgrade to Charterhouse Square.
RBS was advised by DTZ on the surrender of the existing lease. Charterhouse was advised throughout by Ingleby Trice. Helical were unadvised.
"This is another attractive refurbishment opportunity in the exciting EC1 area adjacent to the Farringdon East Crossrail Station and overlooking Charterhouse Square. We are very pleased to have secured this opportunity, which complements our activities at nearby Barts Square, and which plays strongly to Helical's development skills," Gerald Kaye, director of Helical Bar, said in a statement.
Helical Bar shares were up 1.0% at 372.50 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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