A consortium backed by the property industry has presented MPs with plans for a private-sector alternative to Crossrail.
The London Regional Metro group claims that the current Crossrail proposal is “undeliverable” because of its reliance on public funding and costly compulsory purchases.
Instead, LRM offers to draw local developers and landowners into a consortium, asking them to sacrifice up-front payments for land in return for a share of the long-term profits.
The consortium has the support of Grosvenor, Jones Lang LaSalle, Greycoat and the Corporation of London, and is led by Arup director
Mark Bostock. Royal Bank of Scotland will arrange finance. Law firm Berwin Leighton Paisner and engineer Maunsell are also advising.
It is understood that LRM will be approaching London property players through Jones Lang LaSalle.
The consortium met with over 50 MPs this week, as well as members of the Greater London Authority and local councillors, to convince them to switch support from Cross London Rail Links Crossrail to the LRM scheme.
The consortium argues that CLRLs reliance on public funds and “ambitious” finance methods, such as introducing land taxes, make it too complex, uncertain and expensive for both the government and the private sector. LRM proposes to use only private finance.
Under the proposals, seen by Estates Gazette and to be unveiled by the end of the month, the government would not have to pay anything until 2011, when LRM would lease the infrastructure to the Strategic Rail Authority and London Underground.
A source close to LRM said: “This proposal is all about partnership with the property industry, and private sector funding. Its the perfect solution for the government.”
LMR says a cross-London rail link, linking east London to Heathrow, is essential for most of the 90m sq ft of development included in Mayor Ken Livingstones London Plan, including Chelsfields Stratford and White City schemes.
EGi News 20/01/03
