Billions of pounds of development faces an uncertain future following Railtracks takeover by the Government.
Confusion has arisen due to a dispute between the directors of Railtrack Group and its administrator, Ernst & Young, over which Railtrack division manages its £3bn-plus property portfolio.
Railtrack Group is the holding company into which all non-operational assets are due to be placed. Railtrack plc, now in administration, is the operating company for tracks.
Railtrack Group has said that it could use the non-operational property to compensate angry shareholders.
A spokesperson for the company said: “We are looking at ways to compensate the shareholders, and boost share value. Selling the property holdings would definitely be considered as part of that.”
Railtracks vast property portfolio includes the £1bn joint venture with Pillar for a 740,000 sq m (8m sq ft) mixed-use scheme in Cricklewood, north London, the Broadgate business centre in the City, and the development of projects at major London stations, including Victoria and Paddington.
See Saturday’s Estates Gazette for the full version of this story.
