London office developer Helical has sold its 50% stake in the JJ Mack Building in London to its joint venture partner, AshbyCapital.
The transaction values Helical’s share of the property at £139.2 mln (€165.5 mln), putting the total value of the property at £278 mln.
The JJ Mack Building, completed in September 2022, is a 10-storey, 18,637 m2 office building, comprising also 852 m2 of terrace space and 508 m2 of ground floor retail space.
The asset has significant sustainability, wellness, and smart building credentials, boasting a 96.4% BREEAM 2018 score, making it the highest-scoring office building in the UK.
The building generates £17.4 mln (€20.7 mln) in annual contracted rent, with Helical receiving £8.7 mln (€10.3 mln). The building was 90% occupied, with six office tenants including Sainsbury’s and Partners Group. Three additional retail units were leased to Sainsbury’s and E-on Next.
Matthew Bonning-Snook, CEO of Helical, commented: ‘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 sub-market. This sale is very material to Helical as it releases sufficient cash to ensure that the equity requirements of our entire exciting development pipeline. We will continue to recycle our portfolio, as market conditions allow, as we seek to grow the current pipeline whilst focusing our near term attention on the delivering best-in-class space into a supply constrained 2026 market.’
Peter Ferrari, CEO of AshbyCapital, added: ‘We are delighted to have completed the purchase of our partner’s 50% share in The JJ Mack Building to add another market leading office asset to our uniquely high quality long term central London portfolio. With only one 1,858 m2 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.’
The sale proceeds will be used to support Helical’s development pipeline, which includes over 63,638 m2 of office space and a 429-unit PBSA scheme. Construction is underway on three new office developments: 100 New Bridge Street EC4, Brettenham House WC2, and 10 King William Street EC4. Additionally, plans are advancing for future projects in Paddington and Southwark.
