Helical is to work on developing new offices above some Tube stations
(Picture: Helical and TfL)Transport for London’s commercial property company has named developer Helical as its preferred investment partner for creating a number of new central London office schemes.
The partnership between TTL Properties and London-listed Helical, will see the pair work on the delivery of high-quality and sustainable office space above or close to certain Tube stations.
There are currently three projects planned, at Bank, Paddington and Southwark. Buildings will be constructed on the basis of net zero carbon.
Collectively these schemes will be nearly 600,000 square feet and feature offices and shops.
The capital’s transport authority, which saw passenger numbers drastically slump during the pandemic, regularly looks at ways to generate new income, such as from a rental homes pipeline.
Under the latest scheme, 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.
Scott Anderson, head of property development at TTL Properties Ltd, said the partnership would help “generate vital additional revenue, which can be reinvested into the transport network and help fund a safe, green and reliable public transport network”.
Matthew Bonning-Snook, property director at Helical, said: “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.”
Commitment to the developments comes even as many staff work from home and average office occupancy levels are below pre-Covid levels.
However, employers are increasingly looking at their environmental, social and governance (ESG) credentials, and there has been demand for more environmentally-friendly offices, even if staff are only in them for part of the week. Hybrid working has remained a trend that has outlasted the pandemic.
The new 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% with Helical taking 51%.
Details of the planned developments are:
Bank over-station development: An eight storey over development located above the new station entrance on Cannon Street. There will be some external terraces and a green roof. Work is anticipated to start in 2024.
Paddington over-station development: Located by Grand Union Canal and close to the new Elizabeth line station at Paddington will be a 19-storey building. A canal side reception is planned, with a start on site expected in 2026.
Southwark over-station development: This will be above Southwark Tube station on the Jubilee line. A 17-storey hybrid timber building is planned, with construction expected to begin in 2025.
