13th Feb 2014 11:56
LONDON (Alliance News) - Helical Bar PLC said Thursday it has started development and refurbishment work at a number of its London office sites which it hopes will provide substantial additional profit in the next few years.
In an interim management statement, Helical said work has started on the GBP36 million refurbishment and extension of 211 Old Street, London. The site is due for completion in March next year, delivering a refurbished and extended office building of around 127,00 square feet plus 21,000 square feet of new space.
In November, the company, in a joint venture with Grainger PLC, obtained a resolution to grant planning consent for a GB150 million regeneration scheme on King Street, Hammersmith. The site will provide 196 residential units, a cinema, new retail space, replacement offices for the council and a new town square.
The property investment company said it is also close to completing the GBP1.5 million refurbishment of the Shepherd Building near Shepherds Bush tube station. The building in west London is currently 97% let.
The firm has also concluded a contract to acquire a 43,000 square feet office building on Clifton Street, Shoreditch, for GBP21 million. The transaction will go through once the site is completed, with demolition currently in progress. Construction is expected to start in the coming months.
In addition, the firm acquired the freehold to Enterprise House, Paddington, London for GBP31 million through a sale and 20-year leaseback with Network Rail Infrastructure Ltd, representing a net initial yield of 5.7%.
Helical Bar also sold a number of properties in recent months, including the 68,477 square feet TK Maxx unit at the Morgan Quarter, Cardiff for GBP14.8 million. The firm said this was 13% above its book value in March.
Since September, Helical bar said it has signed a GBP98 million five year investment facility with PBB Deutsche Pfandbriefbank, refinancing GBP46 million of existing debt.
The stock was trading at 390.00 pence Thursday morning, up 6.40 pence, or 1.7%.
By Anthony Tshibangu; [email protected];
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