16th Feb 2015 16:18
LONDON (Alliance News) - Helical Bar PLC Monday said it has disposed of two major retail schemes in Glasgow and in Corby, Northamptonshire, for GBP141.2 million, capital it said it plans to recycle into unspecified "new opportunities".
The property investment and development company said it has exchanged on the sale of its long leasehold interest in the Glasgow Clyde Shopping Centre to Edinburgh House Estates Ltd and Cerberus for GBP70 million. It said the disposal reflects a net initial yield of 7.25%, and a premium over book value of 3%.
Helical also has exchanged on the sale of Corby Town Centre to Europa Capital Partners and Sovereign Land for GBP71.7 million, reflecting a net initial yield of 7.25% and a premium to book value of 5%, it said.
The company said the net proceeds from the Clydebank disposal will be used to repay GBP30 million of bank debt, with Helical's share of the net surplus boosting its cash reserves by GBP23 million. It said the proceeds from the Corby transaction will be used to repay around 40 million of bank debt, with the remaining amount increasing Helical's cash reserves by a further GBP31 million.
Helical Bar said the two disposals conclude the sale of all of its in-town retail assets with the exception of one in Cardiff, which the company said it considers a long-term holding.
The company's shares were up 0.5% at 392.00 pence late Monday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Helical Bar