National Grid is investigating the possible sale of its portfolio of non-operational property assets, comprising 500 former gasworks on more than 1,000 hectares of land, in what would be one of the largest corporate disposals of property assets in the UK. The electricity and gas networks operator confirmed that property advisor DTZ has been engaged to help with the process and market testing has begun. The move is part of National Grid's strategy of focusing on it core business in the UK and the US. The group announced in April it was selling its UK wireless business to Macquarie UK Broadcast Ventures for about EUR 3.6 bn.
National Grid is investigating the possible sale of its portfolio of non-operational property assets, comprising 500 former gasworks on more than 1,000 hectares of land, in what would be one of the largest corporate disposals of property assets in the UK. The electricity and gas networks operator confirmed that property advisor DTZ has been engaged to help with the process and market testing has begun. The move is part of National Grid's strategy of focusing on it core business in the UK and the US. The group announced in April it was selling its UK wireless business to Macquarie UK Broadcast Ventures for about EUR 3.6 bn.
National Grid Property has a staff of 80 people and manages 675 properties with 840 tenancies. 'The property team has an excellent environmental record and are widely recognised for its expertise in relation to the regeneration of brownfield sites,' the company said.
Property Week reported on Wednesday that a sale of the portfolio and the property team could raise as much as £800 mln (EUR 1.2 bn), but National Grid said it did comment on media speculation.
A growing number of European corporations are offloading their real estate assets or are thinking about doing so. 'Our research points to a total underlying real estate market of EUR 7 tln,' outgoing Epra CEO Nick van Ommen said. 'Even if a small fraction of that figure is brought to the market, it will still be a significant sum. We estimate that just under 9% of the total real estate portfolio worldwide is currently listed.' The figures differ from country to country, he added. In Australia, the most mature market in the world, with over one third of all real estate assets in the country listed. By comparison, the figure is about 10% in the UK while in Germany it is less than 2%. The global average is 10%.
The September edition of PropertyEU Magazine investigates the motives behind the trend, the companies have already divested their real estate and who is likely to be next. Click on the link below to read the magazine online.