Helical was selected as the preferred investment partner after a competitive procurement process.
The deal, which is still subject to contract negotiations and a 10-day standstill period, will see a joint venture created for three commercial office over-station developments at Bank, Paddington and Southwark tube stations. All three sites already have full planning permission.
The Bank over-station development, above the new station entrance on Cannon Street, will be an eight-storey development, plus basement. The 140,000 sq ft net internal area (NIA) will include both office and retail space. A start on site is envisaged next year.
The Paddington over-station development, by the Grand Union Canal and close to the new Elizabeth line station at Paddington, will be a 19-storey building measuring around 235,000 sq ft NIA. A start on site is anticipated in 2026.
The Southwark over-station development will be a 17-storey hybrid timber building that TTL expects to be “one of the greenest and healthiest large-scale commercial buildings in the UK”. Measuring around 220,000 sq ft 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.
TTL and Helical are forming a joint venture company that 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 JV, which is to 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, TfL said.
The intention is that the buildings will be constructed on the basis of net zero carbon and the joint venture expect to collaborate with tenants to target a rating of BREEAM Outstanding and Platinum WELL v2 Core.
Scott Anderson, head of property development at TTL Properties, said: “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.”
Helical property director Matthew Bonning-Snook added: “The intention is to deliver 600,000 sq ft 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.”