News

Helical offloads JJ Mack

News

Samantha McClary

01 November 2024

Offices

London

Helical has sold its 50% stake in the JJ Mack Building in Farringdon, EC1.

The £139.2m stake has been bought by joint-venture owner of the asset AshbyCapital. The deal price gives the property a value of around £280m and, less debt, the net sale proceeds to Helical will be £71.4m.

Helical chief executive Matthew Bonning-Snook said the sale was “very material” to the firm as it would release funds for its development pipeline.

“The JJ Mack Building is truly a best-in-class office building, demonstrated by the rents we have achieved being significantly ahead of competing buildings in its submarket,” he said. “This sale is very material to Helical as it releases sufficient cash to ensure that the equity requirements of our entire exciting development pipeline, totalling over 685,000 sq ft of offices and a 429 unit purpose-built student accommodation scheme, are now fully funded.”

He added: “We are already making good progress in delivering this, with construction under way on three new office schemes (100 New Bridge Street, EC4; Brettenham House, WC2; and 10 King William Street, EC4) and plans progressing at our future development projects at Paddington and Southwark.”

Bonning-Snook said Helical would continue to recycle assets from its portfolio, “as market conditions allow” while also seeking to grow its current development pipeline.

Peter Ferrari, chief executive at AshbyCapital, said the acquisition of the remaining 50% stake of the JJ Mack added another market-leading office to its central London portfolio.

“With only one 20,000 sq ft floor remaining to let, the transaction marks the conclusion of this highly successful partnership with Helical and we look forward to further joint projects in the future,” said Ferrari.

JJ Mack currently produces an annual rent of £17.4m and is 90% let to six office tenants, including Sainsbury’s and Partners Group.

Completed in September 2022, the JJ Mack Building was named after the market trader who occupied the site in the 1940s. The 10-storey building comprises 200,611 sq ft of offices, 9,172 sq ft of terraces and 5,474 sq ft of retail space. It is has EPC A and NABERS five-star ratings.

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JJ Mack Building

Helical has sold its 50% stake in the JJ Mack Building in Farringdon, EC1. The £139.2m stake has been bought by joint-venture owner of the asset AshbyCapital. The deal price gives the property a value of around £280m and, less debt, the net sale proceeds to Helical will be £71.4m. Helical chief executive Matthew Bonning-Snook said the sale was “very material” to the firm as it would release funds for its development pipeline. “The JJ Mack Building is truly a best-in-class office building, demonstrated by the rents we have achieved being significantly ahead of competing buildings in its submarket,” he said. “This sale is very material to Helical as it releases sufficient cash to ensure that the equity requirements of our entire exciting development pipeline, totalling over 685,000 sq ft of offices and a 429 unit purpose-built student accommodation scheme, are now fully funded.” He added: “We are already making good progress in delivering this, with construction under way on three new office schemes (100 New Bridge Street, EC4; Brettenham House, WC2; and 10 King William Street, EC4) and plans progressing at our future development projects at Paddington and Southwark.” Bonning-Snook said Helical would continue to recycle assets from its portfolio, “as market conditions allow” while also seeking to grow its current development pipeline. Peter Ferrari, chief executive at AshbyCapital, said the acquisition of the remaining 50% stake of the JJ Mack added another market-leading office to its central London portfolio. “With only one 20,000 sq ft floor remaining to let, the transaction marks the conclusion of this highly successful partnership with Helical and we look forward to further joint projects in the future,” said Ferrari. JJ Mack currently produces an annual rent of £17.4m and is 90% let to six office tenants, including Sainsbury’s and Partners Group. Completed in September 2022, the JJ Mack Building was named after the market trader who occupied the site in the 1940s. The 10-storey building comprises 200,611 sq ft of offices, 9,172 sq ft of terraces and 5,474 sq ft of retail space. It is has EPC A and NABERS five-star ratings.