Small business tenants raise fears over controversial move: NR sells railway arches in £1.46bn property deal

NETWORK Rail’s commercial estate portfolio has been sold to property companies Telereal Trillium and Blackstone Property Partners in a £1.46billion deal.

NR says the sale will help to fund major improvements without placing an extra burden on taxpayers.

Network Rail has sold its commercial property portfolio, which includes thousands of industrial units housed in railway arches. With the office blocks of the City of London towering behind, London Overground EMU No. 378135 slows to call at Hoxton with a New Cross Gate to Dalston Junction train. CHRIS MILNER

Telereal and Blackstone will hold equal stakes in the estate of 5,200 properties, most of which are converted railway arches housing small businesses in urban areas.

A tenants’ charter has been established to give a commitment to engage with all tenants and communities in an ‘open and honest manner’. However, although it pledges to safeguard the rights of tenants, it does not include any commitment to curb rent increases.

The sites are being sold on a 150-year lease, with NR retaining access rights for the future operation of the railway.

Read more in the October issue of The RM – on sale now!

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