A joint venture (JV) of Helical and Places for London, the property arm of the UK's Transport for London, has secured a £220m ($300m) loan for Paddington Over Station Development (OSD) in London.
The financing agreement was signed with PIMCO Prime Real Estate, acting on behalf of institutional investors.
The JV secured the loan before completing the site purchase, scheduled for 25 February 2026 at £55m, with Helical’s share amounting to £28.1m.
The Paddington OSD represents the second of three initial locations the joint venture is set to acquire, following Helical’s appointment as Places for London’s commercial development partner.
The upcoming scheme will comprise a new 235,000ft² office building situated above the northern entrance to Paddington station, adjacent to the Grand Union Canal, offering direct access to the Elizabeth Line, London Underground and National Rail services.
The financing facility spans four and a half years and includes terms that lower borrowing costs upon achieving set development and letting milestones. The arrangement also features an optional one-year extension.
According to the terms, 54.5% of the equity already invested will be reimbursed, which includes the cost of acquiring the site, and 54.5% of additional development and financing expenses will also be covered.
Designed by Grimshaw, the office building will comprise 15 floors with floorplates of 15,675ft² and private south-facing terraces.
The scheme has already achieved BREEAM Outstanding at the design stage with a score of 97.4%, and is also targeting WELL Shell & Core Platinum, EPC A, and a NABERS 5.5 rating.
Enabling works are scheduled to commence in June 2025, while the joint venture remains in advanced negotiations with a prospective main contractor and expects to award the contract in March 2026.
Main construction is set to begin in the second quarter of 2026, with completion expected in the third quarter of 2028.
Helical remains subject to minimum net asset requirements under both the facility agreement and its agreement with Transport for London as per its joint venture terms with Places for London.
Helical chief financial officer James Moss said: “The progress made on the Paddington OSD bolsters our pipeline of prime London developments and maintains the momentum we have built up through our partnership with Places for London.
“Successfully closing the financing, which is accretive to returns, follows the financing of 10 King William Street last year. It further demonstrates the strong lender confidence in the joint venture and its strategy and supports our long-term conviction in the ongoing demand for high-quality office space in central London.”
In February 2025, Helical and Places for London secured a development financing arrangement of £125m ($156m) with HSBC to fund the construction of a new office development.
