UK property group Helical and Places for London (PfL) have secured a £220m development loan from PIMCO Prime Real Estate.
The partnership has received the financing facility to fund the acquisition and delivery of the 235,000sqft Paddington Over Station Development (OSD) office development in west London.
Helical and Transport for London’s property arm PfL have secured the loan ahead of the £55m site acquisition that will see Helical contributing £28.1m.
Paddington OSD is the second of three initial sites to be acquired by the joint venture, following Helical’s appointment as the commercial development partner for PfL.
The main construction of the Paddington OSD project is scheduled to begin in the second quarter of the year, with practical completion expected in the third quarter of 2028.
James Moss, CFO, Helical, 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.”
Digby Nicklin, CFO, PfL, said: “Great developments like this are key to our wider Places for Growth pledge – growing long-term income for Transport for London that can be invested into the public transport network, bringing improvement and growth to the capital.
“Together with Helical, we are looking forward to seeing this new, high-quality office space take shape in Paddington, one of the best-connected parts of London.”
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