Helical Bar plc has completed the purchase of Broadway House, Hammersmith from Joint Fixed Receivers for £14.1 million (17 mln.), reflecting a net initial yield of 5.7% and a targeted reversionary yield of 8.7%. The acquisition was funded by a £9.17 million loan from a UK lending bank fixed for four years at just under 4% (including margin), with the remainder of the consideration derived from the Group's cash reserves.
The 35,000 ft² (3,240 m²) multi-let investment is located at 1/15 King Street, Hammersmith W6 and arranged as retail on the ground floor with four floors of offices above. 70% of the income is well secured to retail tenants including Dolland & Aitchison, Lloyds TSB, Café Nero & Ladbrokes whilst the first and fourth floors are let to Kaplan Financial Ltd & Pakistan Airways. There are two vacant floors of offices which will be refurbished and let.
Mike Slade, Helical's Chief Executive, commented: "Broadway House fits both with our strategy of buying well located good quality property with genuine opportunities to add value through asset management, and our intention to concentrate on Central London assets over the next two years."
Tom Anderson, Asset Management Executive at Helical Bar, added: "There is currently a shortage of high quality office space in Hammersmith so we will immediately start to comprehensively refurbish the second & third floors. In the meantime, the retail rents are reversionary, ensuring that there is scope to increase our income at rent review and lease renewal."
Helical Bar were advised by Durkin McDermott.