LSH’s capital markets team secured the deal on behalf of Helical Bar, with the price reflecting a yield of more than 8%. LSH Building Consultancy provided building surveys on the assets purchased.
An efficient acquisition process
Duncan Walker, Investment Director at Helical Bar, said: “LSH provided us with excellent service, from the efficient acquisition process of the investment team to the building surveys of our assets.
“The acquisition of this diversified portfolio let to strong covenants provides good cashflow for the group, while also giving us exposure to sectors where we anticipate capital growth.”
LSH operating at its best
Nick Lloyd, Head of South Region Capital Markets at LSH, said: “This acquisition is a good example of LSH operating at its best. With our knowledge of Helical Bar plc’s requirement, we quickly sourced a nationwide portfolio and secured the deal.
"The combination of our specialist capital markets team, regional reach and building consultancy expertise ensured a seamless transition to get the acquisition done quickly.”
195,000 sq ft of office space
The portfolio comprises 10 properties including four office buildings, totaling 195,000 sq ft, located in Crawley, Nottingham, Oldham and Reading where occupiers include the Secretary of State for Communities and Local Government, Thames Water, Derbyshire Police Authority and Invensys.
Also included is one warehouse of 147,000 sq ft located in Cannock let to Nicholl Food Packaging, and more than 90,000 sq ft of retail and leisure assets, located in Birkenhead, Cardiff, Doncaster, Lancaster and Redditch. Tenants include Clydesdale Bank, Homebase, The Co-Operative Group and JD Wetherspoon.
Total net rent of £4.16m
The portfolio’s average weighted unexpired lease term is approximately 14 years to expiry and 12 years to break. It generates a total net rent of £4.16m, with five of the properties offering fixed rental increases.