Around a quarter of Helical Plc’s portfolio will sit empty after the loss of a lease with bankrupt WeWork Inc.

The departure of law firm Baker McKenzie from its central London office ahead of a redevelopment will also contribute to the higher vacancy rate, the London property developer said in a statement. Helical said EPRA earnings per share fell to 1.1 pence in the first half through September, down from 4.8 pence a year earlier.

“While interest from potential occupiers has been encouraging, lease negotiations are taking longer to conclude,” the company said.

Helical shares fell 2.4% to 224.5 pence in London.

In October 2023, Helical forfeited the individual leases for the six floors let to WeWork in the City of London after rent wasn’t paid. It then entered into a short-term license arrangement with the company and received a fee equivalent to the whole of the September quarter’s rent and service charge due under the previous lease arrangements.

Earlier this month, WeWork terminated 40 leases in New York City immediately after filing for bankruptcy. Chapter 11 bankruptcy allows insolvent companies to exit burdensome contracts, including leases, as part of their restructuring.

Author: Chloé Meley and Maggie Shiltagh