Helical waiting on Gateway 2 sign-off before starting student resi block above Southwark tube station

Helical said it will wait for Gateway 2 sign-off before starting work on a scheme to build student flats above Southwark tube station.

Mace has been lined up for the job which will see a 15-storey building built on top of the tube station which was built in 1999 and given a grade II listing last November.

The block will include 429 flats while an adjacent 14-storey council housing block will include 44 homes for Southwark council.

The scheme is being developed by Helical and joint venture partner, Transport for London’s development arm Places for London.

In its interim results last year, the firm said it was hoping to start work in the first half of this year but in its final results this morning Helical said it was still waiting for Gateway 2 approval “before starting construction, with delivery targeted for the start of the 2029/30 academic year”. Helical said that preparatory works had begun on site earlier this month as planned.

Helical completed the sale of its 100 New Bridge Street scheme to US bank State Street this week after Mace reached practical completion on the job earlier this month.

The sale to State Street, which is due to move from its current address at Canary Wharf to its new home next year, was conditional on the £100m retrofit job in the City getting to PC.

Several firms are pricing the £60m fit-out work at the site with Overbury now believed to be in pole position for the job, Building understands.

In its results this morning, Helical said developments going ahead were “concentrated among parties with the balance sheet strength and execution capability required to materially de-risk schemes ahead of construction”.

It added that tender prices had gone up 2.8% in the first three months of the year “with labour availability and compliance requirements increasingly cited as the primary drivers. Contractor appetite to tender has improved but remains selective, with programme risk, contractual terms and covenant strength influencing bid behaviour.

“Against this backdrop, certainty of timing, specification and execution has emerged as a primary source of competitive advantage. Schemes able to demonstrate clear programme visibility, evidence-based deliverability and flexibility to accommodate late stage occupier requirements are consistently outperforming.”