15th Oct 2015 07:54
LONDON (Alliance News) - Helical Bar PLC on Thursday said it has sold Enterprise House in Paddington, London W2, to a "private overseas buyer" for GBP43.0 million, with 70% of the proceeds to go towards paying down debt and the remainder to be used to invest in the company's portfolio.
At a 10% premium to book value, the sale price equates to a net initial yield of 4.04%.
The Art Deco building, which serves as the London headquarters of UK rail network operator Network Rail, was bought by Helical Bar in 2013 in a 20-year sale-and-leaseback transaction.
"We are pleased to have sold Enterprise House, a mature asset in a strong location within Central London. This disposal enables us to capitalise on the strong London market, freeing up capital to deploy into our other London opportunities which will benefit from Helical's expertise in extracting latent value through development, refurbishment and asset management
Shares in Helical Bar were up 0.6% at 420.41 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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