Helical Bar has said it remains “cautiously optimistic” about the London market despite uncertainty caused by the EU referendum result.
In a trading update covering the period from 1 April 2016 to 24 July 2016, Helical said it had achieved 17 new lettings delivering £1.2m of annualised rental income.
Lettings included 9,000 sq ft to fashion retailer Erdem at The Loom, Whitechapel, E1, at £54 per sq ft and 12,000 sq ft at Churchgate House in Manchester.
During the same period, nine lease renewals were agreed securing £243,000 of rental income, 26% above previous passing rent.
Outgoing chief executive Mike Slade said: “Although the result of the EU referendum has led to some uncertainty, we have been quietly encouraged by the continuation of both letting and transactional activity witnessed across the London market since the vote.
“As a business, we remain cautiously optimistic that, given our robust financial position and the characteristics of our London assets, which we believe will remain attractive to a variety of different types of occupier, we are well-positioned to weather any headwinds.”
Slade said Helical’s development programme was “substantially de-risked” with its two largest office developments at One Bartholomew Close, EC1, and One Creechurch Place, EC3, being funded by its partners, with Helical providing limited equity.
Helical’s loan facility with Deutsche Pfandbriefbank has increased by £21m to £120m to fully fund the redevelopment of its refurbishment at 23-28 Charterhouse Square, EC1.
Slade will step down this week as chief executive and take on the role as non-executive chairman. Gerald Kaye will replace him as chief executive.
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