Helical Bar acquires London office for €47m at 4.4% yield

UK REIT Helical Bar has completed the purchase of the Power Road Studios office complex in west London for £34.2 mln (€47 mln), reflecting a net yield of 4.4%.

Helical Bar said the office complex in Chiswick, which is being acquired from Sapcote Developments with existing cash resources, offers immediate income as well as the scope for extension and development.

The 1930s building is a former warehouse that was once used by Singer Sewing Machine Company and includes five standalone buildings, totalling 5,760 m2. The property is currently 100% occupied by a range of tenants, from small entrepreneurial businesses and retail companies to larger media firms. Average rents are £270 per square metre.

Helical sees an opportunity to enhance the rental profile of the current property as well as the longer-term potential for extension or development, capitalising on the positive dynamics of the west London market.

'This acquisition underpins our continued belief in the London market and complements our existing west London portfolio,' said Duncan Walker, Helical’s investment director. 'It is located in a market which we know extremely well and where we are confident that we can capture the reversionary potential of the asset.'

The vendor was represented by JLL.