Major letting agreed at Brettenham House

Helical secures a 23,887 sq ft, 10-year lease at Brettenham House ahead of completion.

What the company is saying

Helical PLC is announcing the exchange of an Agreement for Lease with FGS Global for the sixth, eighth, and ninth floors of Brettenham House, totaling 23,887 sq ft of office space and a private terrace. The company highlights that FGS Global, a strategic leadership advisory firm, will begin occupancy in January 2027 under a 10-year lease, emphasizing the calibre of the tenant and the long-term commitment. The announcement frames the refurbishment of the 128,000 sq ft 1930s Art Deco building as both comprehensive and sensitive to historic features, with specific mention of restored marble-clad staircases and enhanced amenities like five external terraces and a triple-height reception. Helical stresses its role as development manager for Thames Brettenham Limited, earning both a management fee and a profit share linked to rental performance, payable after successful letting. Rob Sims, Helical's Chief Investment Officer, expresses satisfaction with the project's progress and the significance of securing FGS Global as a tenant, while Simeon Goddard, representing Thames Brettenham Limited, underscores the quality of the refurbishment and the importance of this initial letting. The tone is confident, focusing on leasing momentum and strong interest in the remaining space.

What the data suggests

The agreement secures 23,887 sq ft of office space for FGS Global, representing a significant pre-letting within the 128,000 sq ft Brettenham House prior to the project's completion. The lease term is 10 years, commencing January 2027, locking in a long-duration tenant commitment. Practical completion of the refurbishment is scheduled for the end of October 2026, meaning the building remains under construction for several more months. Helical's compensation structure is a development management fee and a profit share, but the announcement does not disclose the fee amount, profit share percentage, or expected rental income. The operational milestone of signing a major tenant is clear, but there is no financial data on rental rates, margins, or costs, limiting insight into the project's economic impact. The refurbishment is described as substantial, with specific amenities and architectural restorations detailed, but no cost or capex figures are provided. The announcement signals strong leasing interest in the remaining space, yet provides no data on pre-letting percentages or pipeline tenants. Overall, the facts confirm a major lease has been secured, but the financial implications remain opaque.

Analysis

The announcement is upbeat, highlighting the exchange of an Agreement for Lease with FGS Global for a substantial portion of Brettenham House and describing the comprehensive refurbishment project. While the lease agreement is a realised milestone, the majority of the operational and financial benefits (tenant occupation, profit share, and enhanced amenities) are forward-looking and will not materialise until late 2026 or 2027. The project is capital intensive, involving substantial remodelling and restoration, but there is no disclosure of financial metrics such as rental rates, costs, or profitability. The language around 'enhanced amenities' and the significance of the letting is promotional, but the actual realised progress is limited to the lease agreement and ongoing construction. The gap between narrative and evidence is moderate: operational milestones are clear, but financial impact and near-term earnings are not addressed.

Risk flags

• ●Execution risk remains significant, as the refurbishment is not yet complete and practical completion is scheduled for the end of October 2026. Delays or cost overruns could impact both project delivery and profitability.
• ●Leasing risk persists for the remaining space in the 128,000 sq ft building. While the announcement claims strong interest, no further pre-lettings or pipeline tenants are disclosed, leaving future occupancy and rental income uncertain.
• ●Financial transparency is limited. The absence of disclosed rental rates, profit share percentages, or management fee amounts makes it difficult to assess the project's expected returns or Helical's direct financial exposure.
• ●Income from the profit share is contingent on successful letting of the building. If the remaining space is not let promptly or at expected rates, Helical's upside from the development management agreement may be delayed or reduced.

Bottom line

Helical's agreement to lease 23,887 sq ft to FGS Global at Brettenham House is a material operational milestone, demonstrating demand for prime office space and validating the refurbishment strategy. The lease, commencing January 2027 for a 10-year term, secures a blue-chip tenant ahead of project completion, but the building remains under construction until at least the end of October 2026. Investors do not have visibility on rental rates, management fees, or profit share terms, making it impossible to quantify the financial impact or returns from this deal. The announcement signals positive leasing momentum, but the risk profile remains elevated until the building is completed and further tenants are secured. The most important takeaway is that Helical has de-risked a portion of the asset with a major pre-let, but the full value realisation and financial upside will depend on successful completion and further leasing progress.

Announcement summary

(LSE:HLCL) Helical PLC has announced that it has exchanged an Agreement for Lease with FGS Global for the sixth, eighth, and ninth floors at Brettenham House, London, WC2. The leased space comprises 23,887 sq ft of prime office accommodation and includes a private terrace with views over the Thames. FGS Global, described as a strategic leadership advisory firm, will take occupation of the space in January 2027 under a 10-year lease term. The comprehensive refurbishment of Brettenham House, a 128,000 sq ft historic 1930's Art Deco office building, is scheduled for practical completion at the end of October 2026. The refurbishment project has involved substantial remodelling of the building while restoring its historic façade and Art Deco features, including two marble-clad staircases. The completed scheme will provide enhanced amenities such as five external terraces, a triple-height reception, and a new dedicated entrance accessed via Savoy Street. Helical is delivering the project on behalf of the owner, Thames Brettenham Limited, under a development management agreement. Under this agreement, Helical receives a development management fee and a profit share linked to rental performance, payable once the building is successfully let. Rob Sims, Chief Investment Officer of Helical, commented on the successful progress of the project and the significance of securing FGS Global as a tenant. Simeon Goddard, Co-Chief Investment Officer of Northview Services Ltd. and representative of Thames Brettenham Limited, highlighted the quality of the refurbishment and the importance of the initial letting. Savills and RX acted on behalf of Helical and Thames Brettenham Limited, while BBG Real Estate London represented FGS Global.

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