Blackstone has acquired TT Group’s 50% stake in the Arch Company.
The US-based private equity firm now has full ownership of the £2bn portfolio comprising more than 5,000 UK railway arches.
The duo acquired the Arch Company from Network Rail in 2019 for £1.5bn.
Last month, TT Group told Estates Gazette that its strategic land arm was aiming to acquire a trio of master development sites over the next year that were capable of delivering between 3,000 and 5,000 homes.
Graham Edwards, executive chairman at TT Group said: “We are proud of the business that we have helped to build with our partner Blackstone, firstly as manager of the business for four years and then jointly with Blackstone overseeing the independent management team. At the time we promised that we would invest in the arches portfolio to create more industrial space in inner cities, that we would support the largely SME tenant base, and that we would work with Network Rail to support the smooth running of the railways.
“The Arch Company has delivered on these three promises: Project 1000 is on track to create 1,000 lettable spaces within the arches portfolio; our response to tenants’ needs within the pandemic was recognised by the Federation of Small Businesses as that of an exemplar landlord and we enjoy a positive and successful partnership with Network Rail.
“We leave behind a strong and well-led business. We believe the history of the Arch Company since 2019 is a great example of how the injection of private sector capital and capability can revitalise a public sector asset to the benefit of all stakeholders. This latest transaction represents a significant inward investment into the UK.
“We have greatly enjoyed our JV partnership with Blackstone and wish them continued success in their stewardship of this important group of national assets. This transaction releases capital and management time for TT Group for investment opportunities that are being explored in 2025.”
Photo credit: The Arch Company
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