REG - Helical PLC - Helical signs contract for office portfolio JV

HelicalAnnouncement

12/07/2023 07:00

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RNS Number : 7043F  Helical PLC  12 July 2023

12 July 2023

HELICAL PLC

 

("Helical" or the "Group")

 

Helical signs contract to partner with Transport for London on commercial
office portfolio joint venture

 

Further to the announcement on 15 February 2023 that Transport for London
(TfL)'s wholly owned commercial property company had selected Helical as its
preferred investment partner for its sustainable commercial office portfolio
across central London, contracts have now been signed confirming Helical as
the joint venture partner.

 

The partnership will see the delivery of new high-quality and sustainable
office space above or close to London Tube stations, which currently consist
of three new commercial office developments at Bank, Paddington and Southwark,
totalling c. 600,000 sq ft. All three sites have full planning permission to
deliver sustainable commercial office developments that provide exceptional
workplaces and positively impact the local community.

 

Matthew Bonning-Snook, Property Director at Helical, commented: "As more
organisations are recognising the important benefits of staff collaborating
through being physically together in the office, London faces a shortage of
tech enabled, highly sustainable space with excellent amenities. In
partnership with TfL, we look forward to delivering an initial c. 600,000 sq
ft of the very best offices in what remains Europe's pre-eminent financial and
cultural centre."

 

Scott Anderson, Head of Property Development at TfL, said: "With more people
returning to London to work following the pandemic, we look forward to
investing in many of central London's best-connected places to create a
portfolio of enjoyable, healthy, innovative, and highly sustainable offices.
This new joint venture complements our wider commercial development programme,
which will see us deliver thousands of new and affordable homes in London, and
generate additional revenues, to help fund a safe, green and reliable public
transport network."

 

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 three schemes are:

 

·      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 proximity to the public transport network,
these new developments will encourage those who occupy the buildings in the
future to travel sustainably.

 

·     The equity joint venture split is 51% Helical and 49% TfL

·     TfL'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)

·     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 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.

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