Helical Bar has revealed that it has lost £730,000 of annual income after 17 of its tenants failed to renew leases or went into administration.
In a trading update for the four months to the end of January, the listed investor and developer said the total excluded retailers Bon Marché and Peacocks, which, although formally in administration, still occupy their shops under existing leases. It added that it is in discussions with both parties.
“During the four months to 31 January 2012, Helical completed 18 new lettings, increasing its contracted income by £490,000 pa. It also completed 24 lease renewals securing a total contracted rent of £690,000 pa including £50,000 pa of rental uplifts.”
Despite the turbulent occupier market, the firm is ploughing ahead with developments including its 500,000 sq ft mixed-use scheme next to St Bartholomew’s Hospital, EC1. A detailed planning application will be submitted this month for the Barts Square scheme, which includes 240,000 sq ft of offices, 225 flats and 27,000 sq ft of shops.
Chief executive Mike Slade said Helical “continued to make substantial progress in identifying and acquiring assets with the potential to provide future capital and income growth, as well as with our drive to recycle capital from our existing portfolio”.
This comprised around £40m of sales during the period and £90m of purchases, including £70m of land and holdings in Corby town centre, which it bought from Land Securities.
Helical negotiated a total of £133m of new bank debt during the period, including a £100m revolving credit facility with Royal Bank of Scotland, and has currently drawn down £106m.
bridget.oconnell@estatesgazette.com
