| Item | 2014 result |
|---|---|
| NAV per share | 385p |
| Unleveraged returns | 20.40% |
| Pretax profit | £87.4m |
| Pipeline value | 27% rise |
Helical Bar’s portfolio rose in value by a fifth last year to more than £1bn.
Michael Slade’s listed developer completed its move out of regional shopping centres and into high-yielding distribution and office assets while maintaining significant exposure to London development.
The company’s NAV per share rose by 23% to 385p in the year to the end of March while unleveraged property returns were 20.4%, compared with 17.5% for the IPD benchmark index.
Pretax profits fell back to £87.4m, down from the £101.7m achieved last year, thanks to the sale of major assets including 200 Aldersgate, EC4.
The group’s London development pipeline proved to be its “engine of growth” with a 27% valuation increase resulting from a string of lettings.
Helical’s Bower project at Old Street, which is being developed in joint venture with Crosstree, is now majority let, with two of the three buildings fully leased, and the third, the Warehouse, 45% let or under offer.
At Bart’s Square, EC1, the company’s largest current project comprising offices, residential and retail, the company confirmed it had sold 64 flats of the 92 released in the first phase. Sales launched in September 2014.
Helical chief executive Michael Slade said: “Our strategy of investing and developing in London while maintaining a high-yielding regional investment programme continues to bear fruit.
“We expect our London portfolio to continue to provide significant surpluses over the next few years as rental levels grow and we complete and let our development schemes. In the regions, we have completed our rotation out of secondary shopping centres and into high-yielding distribution warehouses, regional offices and out-of-town retail parks.
“We have seen good demand from occupiers for the assets in our portfolio and strong interest in those types of assets from institutions. This is leading to a rise in both rental and capital values as the UK economy strengthens outside London.”
