‘Now is the time to build’: Helical backs London property market
London-listed property development firm Helical is hoping for a resurgence in the capital’s real estate market, proclaiming, “Now is the time to build.”
In its interim results for the six months ended 30 September, the company reported a minor recovery in the value of its property portfolio after several years of market uncertainty.
It completed 12 new lettings with a contracted rent of £5m annually of which £2.8m will go to Helical. The share going to the firm was 0.9 per cent above March’s estimated rental value.
Overall, the value of the company’s property portfolio increased 0.4 per cent on a like-for-like basis. Developments added nine per cent, providing a net improvement of 1.3 per cent overall.
The vacancy rate at its completed assets also dipped to 16.1 per cent from 17.6 per cent at the end of March.
The firm hopes to develop a portfolio of premium office space amid an anticipated shortage of supply over the coming years.
“In my first six months as chief executive of Helical, we have been implementing the strategy agreed following the business review undertaken earlier this year and have focused on shaping the company to best capture the cyclical growth opportunity,” Matthew Bonning-Snook, chief executive of the firm, said.
“Our substantial development pipeline is set to deliver ‘best-in-class’ office developments into a supply-constrained 2026 and beyond,” he added.
The pipeline includes the redevelopment of 100 New Bridge Street, near Blackfriars, and an eight-storey office development on 10 King William Street, near Bank.
The firm also plans to develop student accommodation above Southwark station and a 235,000 square feet of office space near Paddington.
The development pipeline will provide “valuation surpluses” as well as new revenue streams from development management fees.
However, the firm cut its interim dividend to 1.5p per share, down from 3.05p at the same point last year.
It said it was rebasing its dividends to a lower level while waiting for new projects to produce profits.