Helicar Bar purchases London mixed-use scheme for resi conversion

Helical Bar has entered into an agreement with corporate pension fund clients of Savills Investment Management (formerly Cordea Savills), to acquire and redevelop a long leasehold site at 26-35 Drury Lane & 8-12 Dryden Street in London.

Helical said it will work up plans with a view to submitting a planning application by September for an 80,000 sq ft (7,432 m2), mixed use scheme.

On grant of planning, Helical will purchase the site for an agreed price of £42 mln (€59 mln) and undertake the development of the scheme.

Upon completion of the development, the pension fund clients will receive a profit share and retain ownership of the basement and ground floor retail space comprising a total of 16,000 sq ft.

The 0.5 acre site currently comprises 65,000 sq ft of office and retail space. The proposed plans will involve a full redevelopment of the existing buildings, to create a residential-led scheme comprising 70 residential apartments, as well as retail and restaurant space, and improved public realm.

Lucy Winterburn, director of Investment, Savills Investment Management, said: 'We purchased the long leasehold interest in this island site in 1997 when Covent Garden was considered very much a fringe location. During the period of ownership we have seen the market evolve and the location significantly improve. Our client’s ability to retain the retail element on completion whilst sharing in residential profit perfectly matches our long-term goals for a site that has been a key holding for almost 20 years, proving property can be a long game.'

Helical was advised by Cushman & Wakefield. Savills Investment Management was advised by Savills.