Helical Bar plc, a British property investment and development company announced that its joint venture with the funds managed by Seth Klarman’s Baupost Group signed an agreement to sell One Bartholomew Close to Ashby Capital for £102.4 million (or about $160 million).
Helical Bar plans to use the net proceeds from the sale to return equity to the joint venture partners and to provide capital for the final phase of the residential aspect of the arrangement.
Gerald Kay, director at Helical Bar, said, “This deal with Ashby represents a further milestone in our major Barts Square mixed-use development and enables us to deliver a high-quality office building in 2018…”
On the other hand, Ashby Capital CEO Peter Ferrari said, "The acquisition of One Bartholomew Close, adjacent to our existing holding of 200 Aldersgate, increases our ownership in this fast improving area of the city which will be further enhanced with the completion of Crossrail in 2018.”
Bartholomew Close is part Helical Bar’s Barts Square
One Bartholomew Close is a 211,000 sq ft office development, which will comprise of a new, high-quality building on ground and eleven upper floors with average floor plates of circa 19,3000 sq ft, a large terrace on the tenth floor and 388 bicycle spaces.
One Bartholomew Close is part of the Barts Square mixed-use development of Helical Bar. The Barts Square is composed of additional 35,000 sq ft of office space in two buildings, 23,100 sq ft of retail/restaurant accommodation, 234 residential units, and extensive public area improvements.
The City of London Corporation approved the Barts Square development plan in 2012. According to Helical Bar, the demolition of existing buildings on the site will start later this year. The company expects to complete the construction of the new building in summer 2018.
Ashby Capital to finance the development costs
Helical Bar said Ashby Capital will finance the development costs of the building. The joint venture will receive a profit share payment following the completion of the construction of the building. The company remains as development manager of the project.
CBRE and Clifford Chance provided advice to Helical Bar, and Baupost join venture on the transaction. Savills and Allen & Overy gave advice toAshby Capital. CBRE, Savills and Ingleby Trice serve as joint letting agents.
