20.10.17
Network Rail confirms year’s largest property sale
Network Rail has pocketed £35m from the sell-off of its National Logistics Centre in Ryton – representing the organisation’s largest-value property sale this year.
The deal is part of NR plans to sell off infrastructure in order to raise extra funds, as well as release underused land for housing developments.
External analysis suggested that the site could be phased out of the national railway system with the introduction of a new inventory order and delivery system over the next few years. As part of the deal, the site will be leased back to Network Rail for the next 15 years while changes take place.
“Network Rail has decided to raise funds from asset disposals to support our ongoing rail enhancement programme,” commented Network Rail Property managing director, David Biggs.
“Investment is crucial to improving the railway in Britain. Improvements lead to longer, faster, more frequent trains; a better, more reliable infrastructure; and better facilities for passengers, especially at stations.
“The sale of the National Logistics Centre in Ryton is part of this plan to build a bigger, better and more reliable railway which benefits all rail users, and delivers the best value for money for taxpayers.”
The announcement forms part of the infrastructure owner’s plans to sell its assets in order to generate extra funding and plug existing cash gaps.
The organisation has also been considering selling off its electrical power networks and even some of its 18 major stations, potentially including London Waterloo, Manchester Piccadilly, Birmingham New Street and Edinburgh Waverly – although not much has been said on these proposals since last year.
These efficiency drives are fuelled by fears that the UK’s infrastructure manager could be in as much as £50bn of debt by the end of the decade.
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