Network Rail (NR) is to sell off 5,200 properties – mostly converted railway arches – to Telereal Trillium and Blackstone Property Partners. Announcing the deal on September 10, NR said proceeds would help fund the railway upgrade plan.
The sites are being sold on a leasehold basis with NR retaining access rights. Telereal and Blackstone will hold equal ownership stakes and intend to be long-term owners of the estate, NR said. Both have adopted a ‘tenants first’ approach and have committed to engaging with existing tenants and communities. Telereal will oversee the day-to-day property management of the portfolio.
“This deal is great news – for tenants it will mean significant commitment and investment, and for passengers and taxpayers it will mean massive, essential improvements without an extra burden on the public purse,” said Sir Peter Hendy CBE, Network Rail chairman.
“Ultimately our role is to run, improve and grow the railway, and managing these properties isn’t essential to that. The new owners will invest in and grow the estate, and we can focus on our core business of running the railway,” said David Biggs, managing director, Network Rail Property.
- Read the FULL story in RAIL 862, published on September 26, and available digitally on Android, iPad and Kindle from September 22.