Helical completes disposal programme

Released: 25/06/2002

Helical has completed its £125 million Central London disposal programme. Hermès, acting for Britel, have acquired Cheapside House, EC4 for £47.8 million reflecting an initial yield of 7.2% (on settlement of outstanding reviews). Dawnay, Day and Patron Capital Partners have bought 141-3 Drury Lane, WC2 for £13.3 million reflecting an initial yield of 7.0% with the leases expiring at the end of this year. Earlier this month, Deka acquired 60 Sloane Avenue, SW3 for £65.6 million reflecting 6.2% initial. The combined initial yield on these sales is 6.7%.

Helical still retains a 60% weighting in Central London, although this is anticipated to decline towards 50% on reinvesting the proceeds in the industrial and retail sectors. Gearing has declined to 36% but is expected to rise gradually as the cash raised is reinvested.

Helical is now stepping up its acquisition programme for high margin, value added deals although it will continue to step aside from the increasingly competitive prices paid for plain vanilla income producing stock. The development programme is being positioned to take advantage of an anticipated recovery in the London and South East office markets from 2004 onwards, with a number of sites actively under discussion.

For further information, please contact:

Michael Slade / Michael Brown
Helical Bar plc
Tel: 020 7629 0113

Stephanie Highett / Dido Laurimore
Financial Dynamics
Tel: 020 7831 3113