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Helical and Places for London have signed heads of terms for forward funding of a major student accommodation and affordable housing project above Southwark Tube station. Construction is set to start in early 2026, delivering 473 homes and enhanced community spaces in a prime central London location.<\/p>\n
Helical has provided a progress update on its Southwark purpose-built student accommodation (PBSA) development in a joint venture with Places for London, Transport for London\u2019s property company. The scheme, located above Southwark tube station, is poised to deliver 429 studio apartments and 44 affordable homes housed in two prominent buildings\u2014a 15-storey PBSA block and a nine-storey affordable housing building. Both were designed by architects AHMM and received planning approval from the London Borough of Southwark earlier this year.<\/p>\n
In the trading update covering the period from April to mid-July 2025, Helical confirmed that heads of terms have been signed for the forward funding of the project, signalling a significant step towards construction. Contracts are expected to be exchanged later this summer, with the site acquisition deferral extended to late November 2025 to accommodate this process. Construction is slated to begin in the first quarter of 2026, pending Gateway 2 approval, with the development expected to be ready for occupation in 2028.<\/p>\n
The project is designed to offer a high-quality student living experience in one of London\u2019s most connected and desirable locations. Situated in Zone 1, residents will benefit from excellent transport links, with London Bridge and Waterloo stations within walking distance. This strategic location ensures easy access to several nearby universities while addressing the pressing demand for quality student accommodation that alleviates pressure on the private rental market in the area.<\/p>\n
Beyond residential units, the development also includes community-oriented features such as retail spaces, new public realm improvements, and a shared community garden. Plans incorporate increased greenery and active frontages along The Cut and Isabella Street, aiming to enhance both the local environment and social infrastructure.<\/p>\n
Helical\u2019s Chief Executive, Matthew Bonning-Snook, emphasised the company\u2019s strategy of focusing on premium developments in central London. Speaking in the trading update, he highlighted the joint venture\u2019s progress with Places for London and the intention to expand the pipeline by exploring further office and mixed-use schemes through various flexible financial structures. This approach reflects Helical\u2019s wider corporate goal of making its equity work harder, incorporating traditional joint ventures and forward funding models.<\/p>\n
Financially, Helical also confirmed that, subject to shareholder approval at its AGM, the final dividend for the year ended March 2025 will be 3.50p per share, bringing the total dividend for the year to 5p, slightly up from the previous year.<\/p>\n
With construction expected to span 2026 to 2028, this Southwark development combines ambitious design with strategic location and community enhancement, representing a noteworthy contribution to addressing London\u2019s growing demand for student housing and affordable homes.<\/p>\n