Transport for London has picked listed London developer Helical as its preferred investment partner for its commercial office portfolio across central London.
The decision, announced by TfL's wholly owned commercial property company, TTL Properties Ltd is subject to contract negotiations and a 10-day standstill – or cooling off – period.
Helical was selected after a competitive procurement process involving a group of central London’s office developers and investors. TTLP, advised by JLL and Herbert Smith Freehills, assessed the potential partners’ sustainability strategies, partnering approach, and investment proposals for its development sites at Bank, Paddington and Southwark, the company said.
The partnership will develop "high-quality and sustainable" office space above or close to Tube stations at Bank, Paddington and Southwark. All three sites have full planning permission. They are:
- Bank: 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 square feet net internal area external terraces on fifth, sixth and seventh floors and a green roof. A start on site is envisaged next year.
- Paddington: located by Grand Union Canal and close to the new Elizabeth line station at Paddington, this 19-storey building currently has permission for new office and retail space at around 235,000 square feet NIA. It will include a canalside reception and use a ground and air source heat pump system. A start on site is anticipated in 2026.
- Southwark: 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", according to TfL. Measuring around 220,000 square feet 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 will 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 sustainability rating of BREEAM Outstanding and Platinum WELL v2 Core for wellbeing.
The sites will also fully incorporate a focus on active travel options for occupants, with the three sites providing almost 900 cycle spaces collectively.
Scott Anderson, head of property development at TTL Properties, said in a statement: “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.”
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. The intention is to deliver circa 600,000 square feet 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.”
This partnership is part of TfL’s wider development activity via TTLP, which will also see thousands of homes, including affordable housing, built on its land across the capital. TTLP 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.