REG - Helical PLC - Helical selected as preferred office JV partner

HelicalAnnouncement

15/02/2023 12:15

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RNS Number : 0414Q  Helical PLC  15 February 2023

HELICAL PLC

 

("Helical" or the "Group")

 

Transport for London selects Helical as preferred commercial office portfolio
joint venture partner

 

·      Helical is selected to progress to preferred bidder stage with
TfL for its commercial office portfolio joint venture

·      Portfolio will create well-connected, sustainable and inclusive
workspaces across central London and includes three over-station development
sites at Bank, Paddington and Southwark

·      New partnership is part of TfL's wider property development
programme, which is delivering operational benefits and generating vital
revenue to allow TfL to keep the city moving and invest in safe, green and
reliable public transport

 

Transport for London (TfL)'s wholly owned commercial property company, TTL
Properties Ltd (TTLP), has announced it has selected Helical as its preferred
investment partner for its sustainable commercial office portfolio across
central London, subject to contract negotiations and a 10-day standstill
period.

 

Helical was selected as the preferred investment partner after a competitive
procurement process involving a group of central London's most accomplished
office developers and investors.  TTLP, advised by JLL and Herbert Smith
Freehills LLP, assessed the potential partners' sustainability strategies,
partnering approach, and investment proposals for its development sites at
Bank, Paddington and Southwark.

 

The partnership will see the delivery of new high-quality and sustainable
office space above or close to Tube stations, which currently consist of three
new commercial office developments at Bank, Paddington and Southwark. All
three sites have full planning permission to deliver sustainable commercial
office developments that provide exceptional workplaces and positively impact
the local community.

 

·      Bank Over-Station Development - located above the new station
entrance on Cannon Street, this eight-storey development, along with a
basement, will include both office and retail space, measuring around 140,000
sq. ft. Net Internal Area (NIA), external terraces on fifth, sixth and seventh
floors and a green roof. A start on site is envisaged next year.

·      Paddington Over-Station Development - located by Grand Union
Canal and close to the new Elizabeth line station at Paddington, this
19-storey building currently has permission to deliver new office and retail
space measuring around 235,000 sq. ft. NIA. It will include a canal side
reception and use a ground and air source heat pump system. A start on site is
anticipated in 2026.

·      Southwark Over-Station Development - located above Southwark Tube
station on the Jubilee line, this 17-storey hybrid timber building is set to
be one of the greenest and healthiest large-scale commercial buildings in the
UK. Measuring around 220,000 sq. ft. NIA, it will provide a mixture of
commercial office space and retail space and has external terraces on most
floors. It is expected that construction would start in 2025.

 

The joint venture company will purchase leasehold interests in the sites from
TfL and establish individual property companies for each of the sites. The
sites will then be developed directly by the company, which is to be funded
with equity and debt. Other properties and development opportunities may in
the future be acquired by the joint venture, expanding the partnership's
portfolio, subject to feasibility and assessment.

 

The buildings will be constructed on the basis of Net Zero Carbon and the
joint venture will collaborate with tenants to target a rating of BREEAM
Outstanding and Platinum WELL v2 Core.

 

The sites will also fully incorporate a focus on active travel options for
occupants, with the three sites providing almost 900 cycle spaces
collectively. Combined with their close proximity to the public transport
network, these new developments will encourage those who occupy the buildings
in the future to travel sustainably.

 

Matthew Bonning-Snook, Property Director at Helical, commented: "This is a
hugely exciting opportunity for us to partner with one of London's largest
landowners to deliver three superbly located schemes, with an ambition to
bring forward additional schemes within this long-term joint venture.  The
intention is to deliver c. 600,000 sq ft of much needed sustainable,
best-in-class office space incorporating smart technology, high quality
amenities with a focus on occupier wellbeing and adopting modern methods of
construction in their delivery."

 

Scott Anderson, Head of Property Development at TTL Properties Ltd, said:
"We're delighted to have selected Helical as our preferred investment partner
as we take forward our commercial office portfolio and create best in class
commercial office workspaces that reflects our confidence in London and will
positively impact the capital and its green recovery.

 

"This new joint venture complements our wider commercial development
programme, which will see us deliver thousands of new and affordable homes in
London, develop our estate to support small businesses and train the next
generation entering the construction industry. This partnership will also help
deliver operational benefits and generate vital additional revenue, which can
be reinvested into the transport network and help fund a safe, green and
reliable public transport network."

 

This partnership forms part of TfL's wider development activity that is being
taken forward through its wholly owned commercial property company, TTLP,
which, alongside new commercial office developments, will see thousands of
high-quality new homes - including affordable housing - built on its land
across the capital. TTLP currently has more than 2,000 homes completed or with
work started on site, a total set that is set to double in the next two months
as work begins on more TTLP sites.

 

ENDS

 

For further information, please contact:

 

Helical
plc
020 7629 0113

Matthew Bonning-Snook (Property
Director)

Tim Murphy (CFO)

 

Address:
                                   5 Hanover Square, London
W1S 1HQ

Website:
                                    www.helical.co.uk

Twitter:
                                     @helicalplc

 

FTI
Consulting
020 3727 1000

Dido Laurimore/ Richard Gotla

schelical@fticonsulting.com (mailto:schelical@fticonsulting.com)

 

 

Additional Information

 

·     The contract award is subject to contract negotiations and a 10-day
standstill period.

·     The proportions of the equity joint venture will see TfL take a
share of 49 per cent with Helical taking 51 per cent as the majority
stakeholder.

·     TTLP's and Helical's commitment to building a greener London is
also reflected in the publication of TfL's Sustainable Development Framework.
Published in 2021, the framework, which is closely aligned to both TfL's
Corporate Environment Plan and the Mayor's Recovery Programme, sets out TfL's
approach to driving positive social impact, promoting economic development,
and embodying environmental stewardship across its developments. -
tfl.gov.uk/corporate/publications-and-reports/property-policies
(https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftfl.gov.uk%2Fcorporate%2Fpublications-and-reports%2Fproperty-policies&data=05%7C01%7CCharles.Pinchbeck%40jll.com%7C1ecd28710e224480ca4908db02d188da%7Cbfef2b06d2564f8ebd038d3687987063%7C0%7C0%7C638106871239423368%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=2YT2Nupq20x2RwLLYRnOY6zDB4RBIlRgIGN4eNvKkPs%3D&reserved=0)

·     TfL is being advised by JLL, Newbridge Advisors and Herbert Smith
Freehills.

·     Helical is being advised by Knight Frank and Clifford Chance.

·     London Stock Exchange-listed Helical specialises in developing and
owning the highest quality office buildings in central London. It seeks to
provide the most attractive and sustainable workplaces with market leading
tenant amenities and the most up to date building technologies to enable
forward looking organisations to prosper.

·     Transport for London is taking forward its development activity
through a commercial property company (TTL Properties) that is wholly owned by
TfL, but financed independently of the transport network. The programme will
see new commercial office developments and thousands of high-quality new
homes, including affordable housing, built on its land across the capital as
well as investment in its current commercial asset base. TTLP currently has
more than 1,750 homes under construction and more than 250 already completed.
Currently, work is forecasted to start this financial year on a number of
additional sites that will deliver a further 2,300 homes.

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