Network Rail seeks property development partner

Network Rail, the owner and operator of Britain's rail infrastructure, is looking for a property partner to help with the regeneration of stations across London and the South East. The project is valued at £500 mln, the Financial Times newspaper reported.

In a statement issued on Tuesday, Network Rail said the brownfield sites initially earmarked for development are Twickenham, Guildford, Wembley Cutting, Walthamstow Central, Enfield Town Station, Epsom, Maidstone East and Paddington Enterprise House. The company said it was opening up 'a unique opportunity 'for sustainable development of these locations and boost local communities as well as Britain's railway. Development of this kind, said Network Rail, can be the catalyst for economic growth in urban centres and also provide social benefits for the population.

Mick Martin, director of commercial property at Network Rail, said: 'This is the first deal of its kind for Network Rail. By creating a genuine partnership with our commercial partner, with each of us retaining a 50% stake, we will maximise the value of the chosen sites and develop a sustainable income stream for improving the railway for years to come.

'We are determined to simplify the development process and reduce the cost and time taken to deliver successful and profitable developments. This joint venture will expedite real improvements to stations and facilities for local communities, and is the first of many changes we will make to improve value creation from our assets.'

National Grid, the electricity and gas networks operator, confirmed last month it was 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 company has engaged property advisor DTZ has been engaged to help with the process and market testing has begun.