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UK: Developer Helical and its joint venture partner Places for London have agreed a forward-funding deal for a purpose-built student accommodation (PBSA) scheme above Southwark tube station.
The developer and Transport for London’s property company have conditionally exchanged contracts on the sale of the PBSA scheme to a vehicle wholly-owned by Places for London. The transaction values the scheme in excess of £200 million once completed.
Designed by AHMM, the project, which is situated above Southwark’s Grade II listed tube station, will include 429 student studios, new retail space and substantial public realm enhancements. The site previously had planning consent for an office building.
As part of the transaction, the JV partners have forward sold an adjacent nine‑storey affordable residential building to the London Borough of Southwark
The JV will remain responsible for the delivery of both the PBSA and affordable housing elements, and under the terms of the transaction, the JV will receive an initial payment of £35.2 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.
Southwark is one of three sites being brought forward by Helical and Places for London, with the JV progressing additional projects in central London.
Rob Sims, chief investment officer of Helical, said: “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, de-risking 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 at 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.”
Highlights:
- Developer Helical and its joint venture partner Places for London have agreed a forward-funding deal for a purpose-built student accommodation (PBSA) scheme above Southwark tube station
- The transaction values the completed scheme in excess of £200 million
- Designed by AHMM, the project will include 429 student studios, new retail space and substantial public realm enhancements.
- As part of the transaction, the JV partners have forward sold an adjacent nine‑storey affordable residential building to the London Borough of Southwark
