Helical Bar in £70m Corby deal
Investment company Helical Bar has splashed out £70m on land and buildings in Corby.
The London company acquired the freehold interest in a total of 25 acres of land from Land Securities Group. The purchase price reflects an initial yield of 8 per cent.
Helical Bar's purchases include 175,000 sq ft shopping centre Willow Place, which was completed in 2007 and anchored by Primark and TK Maxx;
Corporation Street and its surrounding areas and the 290,000 sq ft original Corby shopping centre with Iceland, Poundland, Peacocks and Wilkinsons as principal tenants was also bought.
Oasis Retail Park, which has 35,000 sq ft let to Argos, Dream, Farmfoods and Home Bargains, along with several ancillary buildings and development land, complete the acquisitions.
The purchase will be funded by a combination of bank debt and existing cash held within the business. The properties are set to boost Helical's net rental income by about £4.3m.
Duncan Walker, investment director, said the company planned to extend Willow Place once a pre-let had been agreed.
He added: "Corby is a strong town with a fast growing population and its retail offer dominates the catchment area. The assets we have acquired generate a strong cashflow and offer the potential to enhance value through an active programme of asset management.
"This significant acquisition brings the total of assets bought by Helical during 2011 to over £185m and is in line with our stated focus of purchasing assets that, through the application of a range of initiatives, present clear opportunities to grow income and thereby drive increases in capital value over time."
CBRE acted for Helical and Savills acted for Land Securities.
