Helical and PfL JV forward funds Southwark PBSA

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."

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