Helical sells Blackfriars office development for £333m

(Sharecast News) - Central London property company Helical has reported "significant activity" across its portfolio over the second half of its financial year, as it announced the £333m forward sale of an office development near Blackfriars. In an update on trading for the six months to 31 March, chief executive Matthew Bonning-Snook said: "I am pleased to report on a period of significant activity across the portfolio, which has seen us progress schemes through funding, unlock value via planning milestones and achieve a number of sales."

Since the year-end, Helical and a vehicle managed by Orion Capital Managers have exchanged contracts for the sale of the 195,000 sq ft office redevelopment at 100 New Bridge Street, EC4 to an undisclosed S&P 500-listed business.

The £333m sale price, of which Helical's share is £166.5m, reflects a capital value of £1,712 per square foot and a capitalisation yield of 5.0%.

The company expects to receive a share of net profits from its joint venture of at least £27m.

Bonning-Snook said the deal enables the company to "reward shareholders for their patience in recent years", with the board expecting to return some of the sale proceeds to shareholders upon completion in April 2026.

"We expect to recommend a minimum return to shareholders of 50% of the realised net profits from the joint venture, and will give serious consideration to paying up to 100% of the realised net profits from the joint venture, subject to the requirements of the business," he said.

Helical said it had a net debt position of £127.2m on 31 March, less than half the £261.6m reported the year before, with £165.5m of undrawn loan facilities.

Shares were up 4.5% at 181.84p by 0843 GMT.