Slide 1: Helical Bar plc
Helical Bar plc th THURSDAY 24 NOVEMBER 2011
Slide 2: Introduction – What is our strategy?
Introduction – What is our strategy? • To maintain and expand our investment portfolio providing a blend of high yielding retail, office and industrial property with considerable opportunity to increase income and enhance capital value through proactive asset management and skilful stock selection •
Slide 3: Introduction – What have we been doing?
Introduction – What have we been doing? • Major changes to the shape of our portfolio. Since Jan 2010, we have completed the following purchases and sales: Sector Purchases Sales Retail £183mn £12mn Industrial £39mn £59mn Office £82mn £50mn Development £0mn £51mn Total £304mn £174mn Note: including
Slide 4: Introduction – What is the effect on our portfolio?
Introduction – What is the effect on our portfolio? • By gross value, the portfolio split between investment and development is: Jan 2010 Nov 2011 Change Investment 45% 66% +21% Development 55% 34% -21% • Gross Rental Income has increased by £15.3m from £14.7m to £30.0m (with net rents increasing fr
Slide 5: Introduction – Where is the growth coming from and what next?
Introduction – Where is the growth coming from and what next? We expect growth from the following: • Continued rental income – cash on cash returns double digit • Proactive asset management with the existing portfolio • Planning gain from the development portfolio • Development profits – further int
Slide 6: Introduction – What are the challenges?
Introduction – What are the challenges? Still a very challenging environment. Major challenges include: • Macro-economic uncertainty – effect on banking, valuation and asset liquidity • Banking liquidity, in particular development funding • Tenant default • Falling rental levels and capital values •
Slide 7: 30 September 2011 Financials – Summary Profit and Loss
30 September 2011 Financials Summary Profit and Loss Year To Half Year To Half Year To 31 March 30 September 30 September 2011 2010 2011 £m £m £m Net rental income (incl. share of joint ventures) 17.8 8.4 11.0 Development property profits/(loss) (16.6) (9.2) 1.8 Trading property loss (0.4) (0.4) - G
Slide 8: 30 September 2011 Financials – Summary Balance Sheet
30 September 2011 Financials Summary Balance Sheet Includes share of joint ventures Pro-forma 31 March 30 September 24 November £000 2011 2011 2011 £m £m £m Investment properties 338 303 373 Land, developments and trading properties 163 159 159 Cash and cash equivalents 35 50 33 Borrowings (277) (26
Slide 9: 30 September 2011 Financials – Net Debt and Hedging
30 September 2011 Financials 31 30 Pro-forma March September 24 November 2011 2011 2011 Net debt £241m £215m £285m Net gearing 94% 84% 112% Property portfolio at valuation £532m £495m £565m Ratio of net borrowing for property portfolio 45% 43% 50% 25 24 May November 2011 2011 Hedging - Fixed rate bo
Slide 10: Debt Profile - Maturity
30 September 2011 Financials Debt Profile - Maturity 31 30 24 March September November 2011 2011 2011 £m £m £m ˂ 1 Year 39.6 28.0 28.0 1-2 Years 75.8 126.9 126.9 2-3 Years 88.2 11.7 11.7 3-4 Years 14.2 66.2 118.6 4-5 Years 59.0 32.6 32.6 276.8 265.4 317.8 10
Slide 11: 30 September Financials – Actual and Target
30 September Financials ACTUAL TARGET 30.09.2011 31.03.2012 £m % £m % Investment 303 61.2 394 75.0 Development (at fair value) 192 38.8 131 25.0 495 100.0 525 100.0 Net Rents 19.3 Interest - swaps/floor (5.8) - floating (6.2) (12.0) Administration (7.2) Surplus 0.1 Dividend at 4.9p per share 5.7 11
Slide 12: 200 Aldersgate, London EC1
200 Aldersgate, London EC1 • Office refurbishment of circa 370,000 sq ft NIA • Building launched in January 2011 • 92,000 sq ft of office space let in 10 separate leases • 35,000 sq ft basement let to Virgin Active • Value related fee dependent upon letting and subsequent sale 12
Slide 13: 200 Aldersgate, London EC1
200 Aldersgate, London EC1 13
Slide 14: Mitre Square, London EC3
Mitre Square, London EC3 • Planning consent granted for prime office development of 273,000 sq ft NIA with 3,000 sq ft retail/restaurant • Demolition able to commence Q1 2012 • Equity lean land deal • Commence development when majority is pre let or forward funded 14
Slide 15: Mitre Square
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Slide 16: Barts Square, London EC1
Barts Square, London EC1 • Acquired jointly with Baupost in March 2011 • Baupost two thirds and Helical one third interest • Currently let to NHS at £3.3 million per annum • Vacant possession between 2014 and 2016 • Planning application Q1 2012 for major mixed use scheme of circa 230,000 sq ft offic
Slide 17: Barts Square, London EC1
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Slide 18: Helical Poland - Europa Centralna, Gliwice
Helical Poland - Europa Centralna, Gliwice • Retail park and mall 66,000 sq m • Institutional client of Standard Life 50% partner • TDC €112 million • Aareal debt €72 million • Equity - €40 million provided 90% Standard Life, 10% Helical • Cash back to Helical of £16.5 million • Helical 50% of profi
Slide 19: Helical Poland - Europa Centralna, Gliwice
Helical Poland - Europa Centralna, Gliwice 19
Slide 20: Helical Poland - Europa Centralna, Gliwice
Helical Poland - Europa Centralna, Gliwice 20
Slide 21: Helical Retail
Helical Retail • Two deals signed, five deals terms agreed. A considerable number of further deals under consideration • All subject to planning and pre letting hurdle (50%) • Mainly foodstores, Asda, Morrisons, Sainsbury or Tesco • Equity lean – Helical pay up front costs to gain planning consent.
Slide 22: Helical Retail
Helical Retail SHIRLEY, BIRMINGHAM TYSELEY, BIRMINGHAM CORTON WOOD, ROTHERHAM • 300,000 sq ft scheme • 150,000 sq ft scheme • 96,000 sq ft open A1 • 155,000 sq ft retail, 71,000 sq ft Asda non food 85,000 sq ft pre sold to • 78,000 sq ft retail • Planning submitted in Asda for £35.4 million warehous
Slide 23: Fulham Wharf, London SW6
Fulham Wharf, London SW6 23
Slide 24: Fulham Wharf, London SW6
Fulham Wharf, London SW6 24
Slide 25: Fulham Wharf, London SW6
Fulham Wharf, London SW6 25
Slide 26: King Street, Hammersmith, London W6
King Street, Hammersmith, London W6 26
Slide 27: White City, London W12
White City, London W12 HELICAL BAR/AVIVA 27
Slide 28: White City, London W12
White City, London W12 IMPERIAL COLLEGE BBC HELICAL MEDIA BAR/AVIVA VILLAGE M&S WESTFIELD BBC LONDON TV PHASE II CENTRE Bus Interchange WESTFIELD LONDON 28
Slide 29: White City, London W12
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Slide 30: Clydebank Shopping Centre
Clydebank Shopping Centre New letting Proposal to received from Sutherland Asda for a PFS Cakes on the car park New letting Amalgamated to Happit and re-geared 2 Argos Stores New letting New letting to to Costa “Glamourous” Coffee Re-geared 3 Upsized Greggs Internacionale leases (2 shown) Mall incom
Slide 31: Clydebank Shopping Centre – Key Stats
Clydebank Shopping Centre – Key Stats Lease End Profile 45.00% 40.00% Proportion of Rent 35.00% 30.00% 25.00% Jan-10 20.00% Current 15.00% 10.00% 5.00% 0.00% < 5 years 5 - 10 years > 10 years Clydebank Net Rental Income Tracker 6.40 Net Rental Income (£m) 6.20 6.00 5.80 5.60 5.40 5.20 NOI at acquisi
Slide 32: Cardiff – Royal & Morgan Arcades
Cardiff – Royal & Morgan Arcades Rent review due Jan 2012. Evidence to Multiple take rent new lettings from £35,000 in arcades to c. £85,000 Moss Bros June 2012 Pedestrianisation rent review. of St Mary’s Evidence for Street is now uplift from complete and £200,000 to positively driving c. £250,000
Slide 33: Corby Shopping Centre
Corby Shopping Centre Potential Department Potential Store sale of Deene House MSCP to be improved - £1.4million Agreed rent retained review on from the Farmfoods purchase creating price. evidence and moving Upper parts break back to convert to 5 yrs residential – ongoing discussions with Local Pote
Slide 34: The Powerhouse, Chiswick
The Powerhouse, Chiswick New acquisition • Off market sale and leaseback arising from MBO of tenant co. • 25 year FRI leaseback with RPI uplifts • Price paid £3.7m Valuation £5.25m • Base case returns c.40% IRR • Running cash on cash return of 17% 34
Slide 35: Retirement Villages
Retirement Villages • Continued demand for units in Liphook o 13 sales (£6m) since March o Further 25 under offer, 11 since mid-September • But non-core, want to reduce capital invested • Recover capital through: o Building out and selling Liphook by end 2012 o Sell 2-3 sites (Milton under offer) •
Slide 36: Investment Portfolio
Investment Portfolio • Valuation increase of 0.3% in six months to September, including capex, sales and purchases (0.9% on a like for like basis) compared to 0.6% for IPD % of Valuation Initial Reversionary Yield on Equivalent Equivalent Portfolio Increase Yield Yield letting Yield (AiA) Yield (our
Slide 37: Investment Portfolio – Future Performance
Investment Portfolio – Future Performance • Growing income - not from general economic/market growth but from letting voids, extensions etc. (e.g. Clyde income since acquisition) • Capital growth derived from income growth (see above) • Values will rise as voids are let, building refurbished etc and
Slide 38: Investment Portfolio - Risk
Investment Portfolio - Risk • Pricing of risk often indiscriminate o Large parts of market ‘written off’ as too risky i.e. secondary shopping centres now where there are genuine, substantial risks o Shopping centres priced in yield bands based on, for example, size of town o In amongst the rubbish (
Slide 39: Future Acquisition Strategy
Future Acquisition Strategy Still three tier market 1. Prime/trophy ‘institutional’ or ‘safe haven’ assets, limited opportunity to add value - Helical develops and sells into this market 2. Well located, good quality assets but in need of active management and/or capex. Off institutional radar and c
Slide 40: Future Acquisitions - What?
Future Acquisitions - What? • London offices o Low rents (£20’s & £30’s) o Villages (Southwark, Camden, Hammersmith) o Vacancies o Tired buildings in need of capex • Trading portfolios o Increasing pressure from banks to sell o Mainly industrial & retail (as little provincial office content as possi
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Slide 42: Appendix
Appendix 42
Slide 43: Investment Portfolio – Changes to Rental Values
Investment Portfolio – Changes to Rental Values March 2011 – September 2011 Industrial 0% Out of town retail -2.2% In town retail 0% Retail -0.1% Provincial offices 0.2% London offices -0.1% Offices 0% --------- Total -0.1% 43