

“The strength of our relationship with HSBC helped,” says Helical’s finance director Tim Murphy. “They funded the acquisition three years ago, so they are familiar with the site , understand the plans and can see the potential of the site – they’ve walked around it many times in the last three years.”
The facility, which is non-recourse, allows drawdowns of 100% of construction costs and currently carries an all-inclusive interest rate of circa 3.5%; it is repayable in December 2019. It refinances the investment assets, which are currently let on short-term leases to the NHS and are part of the security for the facility. “It also helped that the remaining assets are generating income for a couple of more years,” notes Murphy.
The mixed-use development, covering 3.2 acres in the City of London, was largely occupied by St Bart’s Hospital; Helical and US investor Baupost acquired it for £55m in 2011, with further payments of up to £35m dependent on planning permission and vacant possession.