The portfolio comprises four retirement villages located at Liphook in Hampshire, Faygate in West Sussex, Exeter in Devon and Great Alne in Warwickshire.
The village developments are at varying stages of construction and are set to provide a total of 694 new units.
In the year to 31st March 2017, the retirement village portfolio generated pre-tax profits of £1.8m before provisions against stock of £5.3m, resulting in a net loss before tax of £3.5m.
- Scottish government to give older people more access to affordable housing
- Willmott Dixon wins £11m contract to build Nottingham retirement village
- L&G to fund £35m Headingley redevelopment
Helical has also transferred the £46m of debt secured against the portfolio to L&G and will receive 50% of the total net sale proceeds (£51m) on completion, with the remainder deferred for 12 months.
The sale will reduce the company’s level of group debt and the net cash proceeds will be used to repay its borrowing commitments.
Gerald Kaye, CEO of Helical, said: “While we have generated good profits in the past from our retirement village portfolio, we firmly believe that now is the right time to sell our interests, reduce our gearing and focus solely on our core sectors, where we expect to be able to generate stronger shareholder returns in the future.”
As a result of the sale, non-core assets comprise just 4% of the group’s total portfolio.
Helical’s focus remains on the logistics sector and high-quality offices in London and Manchester.