01.05.06
Network Rail appoints financial adviser
Network Rail has announced the appointment of professional services firm Ernst & Young as its principle financial adviser for Network Rail’s station development programme. The contract will initially run for three years with an option to extend it to ten years.
Ernst & Young will provide advice on deal structure, bid evaluation, financial modelling and bidder due to diligence in support of Network Rail’s programme. The need for up to £4 billion of additional private-partner investment in stations across the UK has been identified by Network Rail. This programme will upgrade stations by leveraging that private-sector investment through commercial development.
John Pike, Network Rail’s Director, Commercial Property, explained, “Rebuilding out train stations – the shop windows of the rail industry – is a big task. We must meet the challenges of higher passenger numbers and public demand for new and upgraded amenities. With Ernst & Young on board we will move more quickly in the market and accelerate this vital job.”
Dougald Middleton, Head of Transport at Ernst & Young, described their new assignment as “exciting”. “The combination of Network Rails commitment to realise the value of its real estate holdings and the development expertise of the major players in the real estate world is a powerful force for change,” he added.
Under the station development programme, Network Rail has short-listed seven high-calibre property developers for schemes to revamp both Euston and Victoria. Later this year, Network Rail will invite expressions of interest from developers to upgrade Waterloo. Fifty larger regional stations will also benefit from the improvement programme, along with hundreds of small stations which will be bundled together over the next few years into clusters as invitations for development.
Ernst & Young was selected by Network Rail through the OJEU tendering process in a tough competition involving major financial institutions, both banks and accountants.
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