Helical, one of London's leading office developers, has completed the sale of its 50% interest in Charterhouse Place, the owner of The JJ Mack Building, to its joint venture partner, AshbyCapital, for £71.4 million.
The deal comes with a dilution of 4p per share to the 31 March 2024 European Public Real Estate Association net tangle assets, which reflects a value of £139.2 million for Helical’s 50% share of the property.
The circa 200,000-square-foot JJ Mack Building in EC1, generates an overall rental income of £17.4 million per year, with Helical receiving £8.7 million of this, and is let to six office tenants including Sainsbury’s and Partners Group.
An additional three retail units are let to Sainsbury’s and E-on Next. Helical said the net sale proceeds will be used to fund its best-in-class development pipeline.
Matthew Bonning-Snook, chief executive of Helical, said in a statement: "The JJ Mack Building is truly a 'best-in-class' office building, demonstrated by the rents we have achieved being significantly ahead of competing buildings in its sub-market.
"This sale is very material to Helical as it releases sufficient cash to ensure that the equity requirements of our entire exciting development pipeline, totalling over 685,000 square feet of offices, and a 429-unit purpose build student accommodation scheme, are now fully funded.
"We are already making good progress in delivering this, with construction underway on three new office schemes (100 New Bridge Street EC4, Brettenham House WC2 and 10 King William Street EC4) and plans progressing at our future development projects at Paddington and Southwark."
He added: "We will continue to recycle our portfolio, as market conditions allow, as we seek to grow the current pipeline whilst focusing our near term attention on the delivering best-in-class space into a supply constrained 2026 market."
The JJ Mack Building was completed in September 2022 and is named after the market trader who occupied the site in the 1940s. The 10-storey building comprises 200,611 square feet of offices, 9,172 square feet of terrace space and 5,474 square feet of ground floor retail space.
On completion it achieved a score of 96.4% under the BREEAM 2018 guidelines, the highest score in the UK for an office building, won the 2021 SECBE Digital Construction Award and has been awarded EPC A and NABERS 5 Stars.
Peter Ferrari, chief executive of AshbyCapital, said: "We are delighted to have completed the purchase of our partner’s 50% share in The JJ Mack Building to add another market leading office asset to our uniquely high quality long term central London portfolio.
"With only one 20,000-square-foot floor remaining to let, the transaction marks the conclusion of this highly successful partnership with Helical and we look forward to further joint projects in the future."