Helical and a vehicle managed by Orion Capital Managers have completed the £333 million forward sale of their 100 New Bridge Street City of London office development in an owner-occupier transaction.
The buyer has not been disclosed but CoStar News revealed in January that US bank State Street was the party in talks to buy the building in one of the largest London office transactions in recent years.
In a stock market announcement with a trading update Helical said the disposal will complete on practical completion of the building, which is expected in April 2026. It said the occupier purchaser is an S&P 500 listed global business, with net assets of over $10 billion and is rated A to AA category rating across three agencies.
The property forward sale net price of £333 million (Helical share: £166.5 million) reflects a capital value of £1,712 per square feet, which represents a capitalisation yield of 5%, before deducting corporate sales costs and a notional rent free allowance. Helical and Orion Capital Managers will continue to deliver the development through to completion of the works. On completion of the sale, the amount drawn under the £155 million development facility will be repaid.
Surplus funds will be paid out to the joint venture partners.
100 New Bridge Street will comprise 195,000 square feet of offices, targeting the highest sustainability, technology and wellbeing standards including EPC A, BREEAM ‘Outstanding’, NABERS 5*, WELL Platinum and WiredScore Platinum. The 10-storey building is undergoing a comprehensive refurbishment, stripping it back to its frame, recladding and adding two additional floors. The completed development will include an eighth floor terrace of 7,450 square foot overlooking St Paul’s Cathedral and across Central London.
The estimated consideration payable for purchase of the shares of Helical Bicycle 3 Limited is £104 million (Helical share: £52 million).
The existing 167,026-square-foot building is a virtual freehold, held on a 999-year long at a peppercorn rent from Network Rail Infrastructure.
Helical entered into a joint venture arrangement for the redevelopment selling a 50% interest for £55 million on a preferred equity basis to a vehicle led by Orion Capital Managers last year.
In London, State Street Bank is in around 345,000 square feet at 20 Churchill Place in Canary Wharf.
Matthew Bonning-Snook, chief executive of Helical said in a statement: “This transaction is a true reflection of the quality of 100 New Bridge Street as a London headquarters destination. The very strong interest we received in the scheme over a year ahead of completion is testament not only to its best-in-class characteristics, but also the acute shortage of prime office space within the submarkets Helical has targeted as part of its significant development programme.”
Aref Lahham, founding partner and managing director of Orion Capital Managers, said:
“The sale of 100 New Bridge Street, following the leasing success of Panorama St Paul’s, represents a further vindication of Orion’s strategy to gain exposure to leasing risk in new best-in-class offices in the most in-demand locations across gateway cities in Europe. This transaction successfully capitalised on the intensifying occupier demand for the revitalised heart of the City of London amidst increasing supply constraints."
Helical and Orion Capital Managers were advised by Knight Frank and Ingleby Trice. JLL advises State Street Bank.
State Street declined to comment.