Developer adds it is expecting student accommodation scheme at Southwark to start next year after gateway 2 sign-off is completed

Helical has said office lettings are on the rise as the developer added it expects schemes in London by Mace and McLaren to complete next year.

In a trading update, covering the period 1 April through to 16 October, the firm said 465,000sq ft of office space was due to finish next year with Mace’s £50m scheme at 100 New Bridge Street and McLaren’s jobs at Brettenham House and Bank Overstation, both worth around £100m, due to wrap up next year.

Chief executive Matthew Bonning-Snook said: “We are encouraged to see the dual dynamics of increased active occupational demand and the scarcity of new office supply driving strong rental growth.

10 KWS

McLaren is carrying out work at the Bank Overstation job, also known as 10 King William Street

“Whilst there remains uncertainty in the wider macro-economic environment, we anticipate this letting momentum continuing. Furthermore, there has been a noticeable improvement in sentiment among investors towards the office sector with increased interest from global capital.”

Helical said Keltbray is on site carrying out preparatory work at its Paddington Overstation scheme which is due to be carried out by Mace.

The £200m project has been designed by Grimshaw and features a 21-storey building running to 34,000sq m at a site located by the Grand Union Canal and close to the Elizabeth line station.

Helical is also developing a third Overstation scheme with plans for a student accommodation scheme above Southwark tube station after proposals for an office tower on the site were scrapped.

southwark

AHMM has designed student housing above Southwark tube station

The new 15-storey block, designed by AHMM and which will contain 429 student rooms and 44 affordable homes, replaces consented plans for a 17-storey office tower above the station and a neighbouring 14-storey council housing block.

In its update, Helical said “negotiations are progressing well for the forward funding of [this scheme]. It is intended that contracts will be exchanged later in the year prior to commencement of major development works in 2026, once gateway 2 approval is obtained.” The job is expected to be finished by autumn 2029.

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