**Summary**
Helical PLC and Places for London (Transport for Londons property company) have entered into a joint venture (JV) to forward fund and sell a purpose-built student accommodation (PBSA) project in Southwark, London, valued at over £200 million upon completion. The scheme includes 429 high-quality student studios, new retail space, and public realm enhancements, designed by AHMM. It also supports the delivery of 44 affordable homes and community facilities, which have been forward sold to the London Borough of Southwark.
The transaction exemplifies Helicals "equity light" strategy, targeting a return on equity of over 3.0x. Construction is set to begin in 2026, with completion by 2029, in time for the 2029/30 academic year. The JV will receive an initial payment of £35.2 million (Helicals share: £18.0 million) upon Gateway 2 approval, expected in the second half of 2026, returning all committed equity and including an interim profit of £20 million (Helicals share: £10.2 million). No further equity is anticipated, with remaining profits payable upon completion.
Places for London will own the PBSA building, generating sustainable long-term income for reinvestment into Londons transport network. The project is one of three sites being developed by the JV, with additional central London projects in the pipeline, potentially including more student accommodation using a similar equity light structure.
Key executives from both companies highlighted the transactions strategic importance, emphasizing the delivery of high-quality student housing, affordable homes, and its contribution to Londons growth and transport funding.