TIDMHLCL
RNS Number : 5433V
Helical PLC
06 April 2023
6 April 2023
HELICAL PLC
("Helical" or the "Company")
Trading Update for the Period Since 1 October 2022
Helical today provides an update covering its trading activity
for the period 1 October 2022 to 5 April 2023 ("the Period") in
advance of the publication of its Full Year results which will be
announced on Tuesday 23 May 2023.
Commenting on the Company's activities, Gerald Kaye, Chief
Executive, said:
"The recent announcement that Transport for London ("TfL") has
selected Helical as its preferred partner for an initial three
over-station developments will boost the Company's development
pipeline to almost 790,000 sq ft (Helical share 460,000 sq ft)
across four substantial office schemes, subject to formalisation of
the joint venture agreement. With 100 New Bridge Street, EC4 due to
start later this year and these three TfL schemes spread over the
period from 2024 to 2026, this pipeline, our most significant for a
number of years, is scheduled to deliver best-in-class office space
into an undersupplied market each year from 2025 to 2028.
"Demand from occupiers for well located, highly sustainable
offices with good amenities, which are essential in attracting and
retaining the top talent, is enabling landlords with the best
buildings to command premium rents. There remains a shortage of
best-in-class newly refurbished or redeveloped office buildings in
central London, a dynamic that is likely to persist for the rest of
this decade as the market plays catch up. With an experienced
management team, a substantial development pipeline, no legacy
assets and historically low gearing levels, Helical is well
positioned to capitalise on the ongoing market dislocation and
structural trends impacting the office sector."
Operational Performance
Pipeline
-- At 100 New Bridge Street, a resolution to grant planning
permission has been received from the City of London and the final
decision notice will be issued upon completion of the Section 106
Agreement. The carbon friendly new building, to be completed in
spring 2025, will provide 192,000 sq ft of office space across 10
storeys, including three new floors which will benefit from
exceptional views of St. Paul's Cathedral. Construction work is
anticipated to commence in Q4 2023 once current office tenant Baker
McKenzie vacates the building.
-- In February 2023, Helical was selected by TfL's wholly owned
commercial property company, TTL Properties Limited, as the
preferred investment partner for its commercial office portfolio
joint venture. Contracts are expected to be concluded in the near
future to formalise the joint venture, which will create
well--connected, sustainable and inclusive workspaces across
central London. Initially, it will be seeded with three
over--station development ("OSD") sites, namely:
o Bank OSD - located above the recently opened Bank station
entrance on Cannon Street. This eight storey office development
will deliver 142,000 sq ft NIA and is scheduled to start on site in
2024.
o Southwark OSD - located above Southwark Tube station. The
scheme has consent for a 220,000 sq ft NIA hybrid timber office
building over 17 storeys. The development is expected to start on
site in 2025.
o Paddington OSD - located on the Grand Union Canal, close to
the Elizabeth Line station at Paddington. This 19-storey building
will provide 235,000 sq ft NIA of office space and construction is
expected to commence in 2026.
Lettings
-- In the Period we have completed five new lettings totalling
45,908 sq ft NIA, delivering contracted rent of GBP4.1m (our share
GBP2.2m) at a 10.3% premium to 31 March 2022 ERVs. Lettings
include:
o The sixth and seventh floors at The JJ Mack Building, EC1 to
Partners Group, a leading global private markets firm. The 37,880
sq ft NIA letting, at an average rent of GBP99.90 psf, represents
an 11.7% premium to 31 March 2022 ERVs.
o A further 3,504 sq ft NIA letting at The Loom, E1 at a rent of
GBP55.00 psf which is in line with the 31 March 2022 ERV.
o The letting of three retail units comprising 4,524 sq ft at
Barts Square, EC1. Following these lettings to LAP Bikes, MyLuthier
and Little Farm/Athletic Fitness, only one retail unit remains
available across the Barts Square estate.
Sales
-- At Barts Square, we have completed the sale of a further
eight residential apartments during the Period. A contract for the
sale of the last remaining apartment in this 236-unit residential
scheme has exchanged and is due to complete later this month.
Rent Collection
-- As at 5 April 2023, we had collected 97.6% of the March
quarter rent (7 April 2022: 93.4%) and expect to collect a further
1.2% via agreed payment plans.
-- We have now collected 98.5% of all rent contracted and
payable for the financial year to 31 March 2023. Of the balance,
1.0% remains to be collected via payment plans with the remaining
0.5% subject to ongoing discussions.
Financing
GBP400m Revolving Credit Facility ("RCF")
At 31 March 2023, the Group had drawn GBP230m under its RCF with
an effective interest rate of 3.1% and a maturity of 3.3 years. The
RCF benefits from interest rate swaps at an average of 0.9% plus
margin on 100% of the drawn amount for the remaining term of the
facility to July 2026.
The RCF is a Sustainability Linked Loan and includes three ESG
targets, which, if met, would result in a small reduction in the
margin. We are due to report on our performance against these
targets in our 2023 Annual Report and Accounts.
Other Facilities
In our joint ventures, we had drawn GBP60.4m of the GBP69.9m
(our share) facility with Allianz to develop The JJ Mack Building,
EC1. Following practical completion of the development on 30
September 2022, the effective interest rate on the loan is 4.2%,
including commitment fees on the undrawn amount, reducing to 2.25%
when fully let.
At 31 March 2023, the Group had c.GBP58m of cash and GBP190m of
undrawn loan facilities with an overall weighted average cost of
debt of 3.4% and an average maturity of 2.9 years.
Sustainability
Our commitment to sustainability continues to receive external
recognition and in December 2022 we achieved a B rating from the
global disclosure system CDP, an improvement from our previous
rating of C. We also retained our EPRA Sustainability Best
Practices Recommendations (sBPR) Gold Award and our GRESB 5 Star,
reflecting our comprehensive and transparent sustainability
reporting.
Notice of Results
The Group confirms that it will announce its full year results
for the 12 months ended 31 March 2023 on Tuesday 23 May 2023. There
will be a presentation for analysts on the morning of the results
at The JJ Mack Building, 33 Charterhouse Street, London EC1M 6HA.
For further details, please contact FTI Consulting.
For further information, please contact:
Helical plc
Gerald Kaye (CEO) Address: 5 Hanover Square, London
W1S 1HQ
Tim Murphy (CFO) Website: www.helical.co.uk
Tel: 020 7629 0113
FTI Consulting
Dido Laurimore Tel: 020 3727 1000
Richard Gotla
Andrew Davis
Schelical@fticonsulting.com
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END
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