REG - Helical PLC - Helical and PfL JV forward funds Southwark PBSA

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RNS Number : 7696U  Helical PLC  27 February 2026

27 February 2026

 

HELICAL PLC

("Helical" or the "Company")

 

HELICAL AND PLACES FOR LONDON JOINT VENTURE SELLS 429-STUDIO PBSA & 44
AFFORDABLE HOMES PROJECT IN SOUTHWARK VIA FORWARD FUNDING AGREEMENT

 

Helical plc, in joint venture (the "JV") with Places for London, Transport for
London's property company, has conditionally exchanged contracts on the sale
of its purpose‑built student accommodation ("PBSA") scheme at the Southwark
over station development, via a forward funding agreement, to a vehicle wholly
owned by Places for London.

 

The latest example of Helical's equity light strategy, the transaction values
the PBSA scheme in excess of £200 million once completed, with the JV
targeting a return on its equity of over 3.0x.

 

Comprising 429 high‑quality student studios, new retail space and
substantial public realm enhancements, the AHMM-designed scheme delivers a
PBSA building situated above the Grade II listed station, conceived to offer a
best‑in‑class student living experience in one of London's most connected
locations.

 

The PBSA supports the scheme's delivery of 44 affordable homes and associated
community facilities. As part of the transaction, the JV has forward sold the
nine‑storey affordable residential building adjacent to the PBSA to the
London Borough of Southwark. This element forms an integral part of the
overall scheme and will contribute to the delivery of high‑quality,
sustainable homes for local people.

 

Construction is scheduled to commence later in 2026, with completion targeted
for 2029, in time for the start of the 2029/30 academic year.

 

The JV will remain responsible for the delivery of both the PBSA and the
affordable housing, ensuring the coordinated and efficient completion of the
overall scheme. Under the terms of the transaction, the JV will receive an
initial payment of £35.2 million (Helical' s share: £18.0 million) on
receipt of Gateway 2 approval, which is targeted for the second half of this
year, returning all the equity committed and including an interim profit
payment of £20 million (Helical' s share: £10.2 million). No further equity
is anticipated to be required, and the remaining profit shall be payable upon
practical completion.

 

These returns are not contingent upon the operational performance of the
asset, but there is the potential for an additional profit payment if its
performance exceeds a base level, payable on stabilisation of the asset.

 

Southwark is one of three sites being brought forward by Helical and Places
for London, with the JV actively progressing additional projects in central
London, including sites that may be suitable for student accommodation and
where it would look to employ a similar equity light forward funding
structure.

 

Places for London, through a wholly owned vehicle, will forward fund and own
the 429 PBSA building and retail adjacent to and on top of Southwark Tube
station. The completed PBSA building will deliver sustainable long-term income
and asset value growth for Places for London, and ultimately Transport for
London (as Places for London's parent company), to reinvest into the transport
network.

 

Rob Sims, Chief Investment Officer, Helical plc, commented: "This complex
transaction is the latest example of how Helical can deploy its equity light
model to generate attractive returns through the Places for London JV.

 

"By leveraging our extensive central London development expertise we were able
to quickly identify the best value use for this extremely well-located site in
a highly supply constrained PBSA submarket, achieving planning consent in
March 2025. Securing this forward funding prior to commencing main
construction works has now enabled a once capital-intensive office scheme to
be restructured into a highly equity efficient development opportunity,
derisking the returns for the JV.

 

"We now look forward to delivering a best-in-class PBSA asset, alongside
important affordable housing for the London Borough of Southwark, and
exploring potential new opportunities for similar transactions."

 

Martin Mohamad, Head of Investment,  Places for London, added: "Working with
market leading delivery partners to unlock well located, high quality
developments like Southwark is at the core of Places' strategy and essential
for London, helping the city's growth and providing affordable homes the
capital urgently needs.

 

"There is a clear commitment from the delivery team to the quality of the PBSA
building, which will be perfectly placed for students across several London
universities. Once completed the PBSA will provide much needed sustainable
income to help fund the transport network, that is so critical to London.
We're proud to be working with Helical to develop and invest in sites such as
the Southwark over station development to deliver fantastic places to support
London's needs and growth."

 

-ENDS-

 

For further information, please contact:

 

 Helical plc
 Matthew Bonning-Snook (CEO)  Address:     22 Ganton Street, London, W1F 7FD

 James Moss (CFO)             Website:     www.helical.co.uk (http://www.helical.co.uk/)

                              Tel:               020 7629 0113

 FTI Consulting
 Dido Laurimore               Email:           Schelical@fticonsulting.com

                            (mailto:Schelical@fticonsulting.com)
 Richard Gotla

                            Tel:               020 3727 1000
 Andrew Davis

 

 

 

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