Helical plc has sold The Morgan Quarter, in Cardiff, to LaSalle Investment Management, for €64.7m (£55m). The sale price is in line with Helical’s March 2016 book value and reflects a net initial yield of 5.9% and a reversionary yield of 6.9%.
Helical acquired the former David Morgan Department Store and two Victorian arcades in 2005. Since then it has undertaken a substantial value enhancing refurbishment programme, delivering more than 300,000 ft² of high-quality, award-winning, retail and office space which is let to a number of established retailers and local businesses including White Stuff, Jack Wills, Urban Outfitters and Molton Brown. The Creative Quarter offices were awarded two BCO awards in 2017. An additional 56 residential apartments were built above the retail space and have since been sold.
Duncan Walker, Investment Director, Helical commented: “This significant sale, at an attractive yield, represents the eighth retail asset we have sold since March 2016. In line with our continued repositioning of the portfolio through value-enhancing disposals, our retail investments now comprise just a small number of retail warehouses. Our intention is to recycle the majority of the proceeds of this disposal into our London portfolio.”