Global law firm Clifford Chance has advised long standing client Helical plc on the sale of its 50 percent interest in Charterhouse Place Limited, the owner of the JJ Mack office building in central London. The £139.2m stake has been bought by Helical’s joint venture partner and co-owner of the asset, Ashby Capital. The deal price gives the property a value of around £280m and, less debt, the net sale proceeds to Helical were £71.4m.
Clifford Chance has been working with Helical plc and Ashby Capital in relation to The JJ Mack Building since the outset of the project, including on the formation of the joint venture, the corporate acquisition of the development site and associated development management arrangements, the re-gear of the joint venture’s headlease interest with the City of London and all development matters such as rights of light, planning and construction since acquisition. The project culminated in Clifford Chance working with the joint venture partners on the leasing up of the building which is currently 90 percent let to six tenants, including Sainsbury’s and Partners Group.
This transaction follows a number of other recent significant mandates for Helical including their joint venture with Orion Capital Managers for the redevelopment of 100 New Bridge Street and the sale of its long leasehold interest in 25 Charterhouse Square to Ares Management.
The transaction was led by Real Estate Partner Ian Painter who commented: “It has been enormously rewarding for our team to advise Helical and Ashby Capital on the JJ Mack building from its inception through to this final sale. The five year timeline for the deal is another example of our team’s ability to provide a one stop shop for our clients and advise at every step of the property’s life cycle. We look forward to continuing to work with the new 100% owner Ashby Capital on letting the final floor of the building.”
Ian was assisted during the redevelopment project by Senior Associates Holly Porter, James Law, Melissa Sykes and Rose Tinker who worked with Ian on the real estate and/or corporate elements of the transaction. Planning input was provided by Environment and Planning Partner Nigel Howorth and Senior Associates Katie Kempthorne and Kate Mackintosh. Construction advice was provided by Construction Partner Ed Bretherton, Director Marianne Toghill and Senior Associate Adam Waite. Real Estate Finance Partner Laura Smallcombe and Senior Associate Rubin Trehan worked on the financing. Tax advice was provided by Partner Jemma Dick together with Associate Archie Zverev.
Helical chief executive Matthew Bonning-Snook said: “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 submarket. 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 sq ft of offices and a 429 unit purpose-built student accommodation scheme, are now fully funded.”
The JJ Mack Building was completed on 30 September 2022 and comprises 200,450 sq ft of offices with 5,511 sq ft of ground floor retail. The building is EPC A and is anticipated to receive both a BREEAM Outstanding rating and a NABERS 5* assessment for energy in use. It has been completed to a high specification incorporating market-leading technology and includes three large roof terraces with uninterrupted views over London.
