A joint venture between a subsidiary of Helical Bar and affiliates of The Baupost Group has exchanged binding contracts to acquire the freehold interest in land and buildings at Bartholomew Close, Little Britain and Montague Street, for a cash consideration of £55 mln (EUR 64 mln). The vendors were St Bartholomew's Hospital (Barts) and The London Charity. The transaction is subject to further payments by the joint venture of up to £35 mln, which will be dependent upon the timing of vacant possession and the floor area of a planning permission being granted for redevelopment in the future.

The freehold interest comprises a number of buildings predominantly let to the Barts and London NHS Trust, which reflect an initial yield of 6.3% delivering rent of around £3.5 mln per annum.

The purchase will be funded by bank debt of approximately £30 mln, with Helical and Baupost having a one third:two thirds economic interest in the property, respectively.

Gerald Kaye, development director of Helical, said: 'This is an exciting scheme for the joint venture which will seek to create a brand new vibrant and dynamic City destination. A fully integrated mixed-use development is planned, including a major new office building and high-quality residential apartments, which will be complemented by a significant element of retail and leisure on the ground floor. The site is within minutes of the amenities and transport links of Farringdon, St Pauls and Cheapside as well as being adjacent to Smithfield with its eclectic mix of retail and leisure which will support our aspiration to create a new quarter within the heart of the City.'