14th Jul 2014 07:37
LONDON (Alliance News) - Helical Bar PLC said Monday that it has sold three assets in Suffolk and Buckinghamshire in the south east of England for a combined total of nearly GBP37 million.
The assets were each sold above book value, said Helical Bar, which in aggregate represented a 6.9% premium.
The company has exchanged on The Guineas Shopping Centre in Newmarket, Suffolk for a consideration of GBP18.24 million to Ignis Asset Management, reflecting a net initial yield of 8.0%.
Helical acquired the 110,000 square foot shopping centre in 2011 from administrators acting for Lloyds Bank and since then has undertaken a concentrated programme of asset management to improve the appearance and performance of the centre.
Also near Newmarket, Helical Bar has completed on the sale of its 53% stake in a 64,000 square foot research and development facility in Fordham, to an unnamed UK institution for GBP15.87 million. The asset was held in a joint venture with Dencora Estates Ltd, said the company. The site is let until 2030 to LGC, a company providing chemical, biochemical and DNA analysis including doping control for the horseracing industry.
The company has also sold its 50% stake in Luminous House in Milton Keynes, to an unnamed private investor for GBP2.6 million. The 12,800 square foot office, which was owned and developed by Helical in joint venture with Abbeygate Developments Ltd, is fully let to i2 Office, a company which operates business centres.
"The South East property market is going from strength to strength with sustained demand from both investors and occupiers for high quality buildings across all asset classes. The sale of The Guineas in particular illustrates the benefits of our ongoing asset management programme. Having concluded a cosmetic refurbishment, and rectified a number of management issues as a result of the administration process, the asset is once again firmly institutional," said Duncan Walker, Investment Director at Helical Bar.
Looking ahead the company said it will continue to seek new opportunities to add value to its operations; Walker added that it has the "significant firepower to do so."
Savills and Lunson Mitchenall acted for Helical on The Guineas Shopping Centre and Kitchen La Frenais Morgan acted for the buyer. Helical was advised by Bidwells on the sale of Fordham. Tudor Toone acted for Helical Bar on Luminous House.
Helical Bar shares were trading 1.15% higher at 351.75 pence per share shortly after the market open Monday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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