Helical Bar concludes €190m of retail asset sales

Helical Bar has disposed of two major retail schemes in the Scottish city of Glasgow and the UK East Midlands town of Corby for a total of £140 mln (€190 mln) as it seeks to recycle capital into new opportunities.

The UK property company has sold the Clyde shopping centre in Glasgow to a joint venture of Edinburgh House Estates and US private equity firm Cerberus for £70 mln, reflecting a net initial yield of 7.25% and a premium over book value of 3%.

Helical acquired the 600,000 sq ft (55,750 m2) centre in a joint venture with Prime Commercial Properties in January 2010, with Helical holding a 60% economic interest. During its ownership, the joint venture concluded a number of refurbishment and extension works, including the addition of a new gym and, in 2013, the disposal of the adjoining Asda unit to Aviva for £12.15 mln.

In the second transaction, Helical has sold Corby Town Centre to Europa Capital Partners and Sovereign Land for £71.7 mln, reflecting a net initial yield of 7.25% and a premium to book value of 5%.

The 700,000 sq ft scheme comprising Willow Place, Corporation Street and Oasis Retail Park was acquired in October 2011. Since then Helical has disposed of £2.8 mln of assets.

The net proceeds from the Clyde transaction will be used to repay £30 mln of bank debt with Helical’s share of the net surplus boosting its cash reserves by £23 mln. The net proceeds from the Corby transaction will be used to repay £40 mln of bank debt with the balance increasing Helical’s cash reserves by a further £31 mln.

'These assets have been extremely successful for Helical having been acquired at the bottom of the market,' said Duncan Walker, investment director at Helical Bar. 'These two transactions conclude the sales of our in-town retail assets. We retain only Cardiff which remains a long-term hold.'

Savills acted on behalf of Helical for both transactions. CBRE acted for the purchaser of the Clyde centre, while the purchaser of Corby was unrepresented.