Network Rail to ‘sell-off’ £1.46 billion worth of commercial property
In recent days, Network Rail has unveiled plans to downsize its substantial commercial property portfolio by ‘selling off’ as many as 5,200 commercial units.
According to reports, the move is expected to bring in approximately £1.46 billion for the national infrastructure group, which will be re-invested in significant upgrades to the UK’s railway network.
The big news will see Network Rail’s nationwide portfolio of commercial units transferred to private equity company Blackstone Group, it has been revealed.
However, tenants of a number of Network Rail’s existing properties have voiced concerns that the move to “sell off the whole estate in one job lot” could result in increased rents, while businesses have said that they fear being ‘forced out’ of their premises.
In response, a spokesperson on behalf of the infrastructure group has said that the properties’ new owners will take a “tenants-first approach” at all times.
Furthermore, the Department for Transport (DfT) has given approval to the plans, acknowledging that “tenants’ rights have been safeguarded” as part of the £1.46 billion deal.
The news comes at a busy time for UK commercial property, after it was revealed this week that UK Commercial Property REIT had purchased a prominent industrial estate in Scotland for a sum of £24.6 million.
The M8 Industrial Estate, which is located near Glasgow, has been purchased from Grayling Capital as part of a major investment deal, it has now been confirmed.