Network Rail has launched the sale of its £1bn arches portfolio, comprising around 5,500 properties in England and Wales.
The majority of the commercial properties will be sold on a leasehold basis, reflecting that access to these properties will be required for the future operation of the railway.
Most of the properties are spaces in railway arches and include varied uses, from restaurants and nightclubs to fishmongers. Rothschild is advising Network Rail on the sale.
Profits from the sale will contribute towards Network Rail’s overall investment in delivering mega projects like the Thameslink Programme, the Great North Rail Project – which includes the Ordsall Chord, Liverpool Lime Street station upgrade, the Calder Valley lines upgrade and the Manchester to Blackpool upgrade – Crossrail and the Waterloo and South West upgrade.
The sale of Network Rail’s commercial estate arm will see a new owner invest more money into the business, bringing more businesses, jobs, commerce and better social environments.
Mark Carne, Network Rail’s chief executive, said: “This deal will bring more investment into the commercial estate for the benefit of the local communities and it will help fund a better railway.
“I hope to see areas around the railway positively transformed with new and refurbished shops, amenities, and extra facilities for local people and passengers.
“The sale will bring a major cash boost to help fund key projects across England and Wales as part of the railway upgrade plan.
“Passengers are about to see a bigger, better railway, with more reliable, more frequent services and upgraded stations and facilities as these huge projects finally come to a conclusion in the months ahead.”
The sale has been agreed across Network Rail and the government, and Network Rail is talking with existing tenants, staff and other stakeholders, who are being provided with information on the decision and the next steps.
To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette
