Business
HELICAL ACQUIRES OFFICE IN LONDON'S "TECH BELT"
HELICAL ACQUIRES OFFICE IN LONDON'S "TECH BELT".
About this update from Helical Plc
[{"type":"text","content":"\n \nRNS Number : 1734K Helical Bar PLC 25 July 2013 \n \n\n25 July 2013\n \nHelical Bar plc (\"Helical\" or \"Helical Bar\")\n \nHELICAL COMPLETES ACQUISITION OF \"TECH BELT\" OFFICE\n \nHelical Bar today announces that it has completed the acquisition of New Loom House, a multi-let office building on the eastern edge of the City in Whitechapel, London E1 for circa £35 million, from a UK based private company. The transaction represents a net initial yield of just under 5%. The acquisition will be funded from existing resources. \n \nNew Loom House is a multi-let, listed Victorian 'warehouse' style office building that provides 112,000 sq ft of office and storage space over five floors. There are 67 lettable units providing between 1,000 sq ft and 5,500 sq ft of space each, which currently generate annual rents of £1.75 million per annum. 11 units are currently vacant providing opportunities to grow the rental income further.\n \nHelical will undertake a comprehensive, phased refurbishment of the building to re-position it so that it appeals to occupiers from the creative industries prevalent in the increasingly popular \"Tech Belt\" that runs from Old Street through Shoreditch and down to Whitechapel. \n \nThe area surrounding New Loom House is set to benefit over time from significant local residential development, as well as the delivery of Crossrail to Whitechapel in 2017.\n \nJack Pitman, Investment Director at Helical Bar said: \"This is an exciting purchase, consistent with our strategy of acquiring assets in the Villages around Central London where rents are low and where we can add significant value through asset management. The average rent in the building is just over £18psf and there should be considerable rental growth from this low base as we improve the building and as the surrounding area continues to undergo regeneration. \n \n\"This purchase, together with the recent £17.5 million acquisition in Shoreditch and others in solicitors' hands, allows us to reinvest some of the capital we have recently recycled from sales and the £80 million retail bond issued to diversify funding sources. This is further evidence of the momentum behind our business.\" \n \nPilcher Hershman advised Helical Bar and CBRE and Richard Susskind & Co advised the vendor.\n-ENDS-\...