Network Rail considers sale of £1bn commercial property portfolio

Fri, 17 Nov 2017 | COMMERCIAL PROPERTY

Network Rail is making plans to sell its commercial property portfolio, in the first stage of efforts to shore up the infrastructure operator's struggling finances.

The state-owned group's collection of more than 5,500 commercial properties in England and Wales is estimated to be valued at around £1bn. The majority of these properties are spaces in railway arches and will be sold on a leasehold basis to ensure Network Rail continues to have access to its infrastructure at short notice.

The decision to sell the commercial estate business as one portfolio comes more than two years after Network Rail first appointed Rothschild to evaluate its property business. The company hopes this deal will help to raise billions that can then be invested in the operator's railways after they've seen intense criticism from the UK rail watchdog for poor management, missed punctuality targets and a slow approach to modernisation.

The group's debt has continued to rise since it was effectively re-nationalised. A sale would be the first significant asset disposal since Network Rail’s debt was shifted on to the government’s balance sheet in 2014, restricting the operator’s ability to borrow money.

Mark Carne, chief executive at Network Rail, said the latest asset sale would allow it to focus on its core business of running the railway. “It’s a tangible example of our approach to capital discipline, our approach to living within our means, recognising that we have to behave like a business and if our growth ambitions exceed our funding then we have to look at other ways of raising funding.”


Share this article



Latest Businesses for Sale

Printed Packaging Manufacturer
London, South East, UK

Long established with strong brand identity. High Levels of repeat business. Continually expanding customer base. Offers invited.

Asking Price: Offers Invited
Turnover: £847,000

Industrial & Elevator Door Engineering
South of England, UK Wide

Very High profile customer base. Framework agreement with world's leading elevator manufacturer. Outstanding track record . Exciting expansion opportunity. Offers invited.

Asking Price: Offers Invited
Turnover: £925,000

Automotive Development & Tuning Business (Fast Sale)
UK Wide

For Further Information: All enquires including requests for a non-disclosure agreement (NDA), should be directed to the below together with Your Name, Registered Company Name and Contact Number: Unconditional offers together with proof of funds to b...

Asking Price: Offers Invited
Turnover: £445,000


View more businesses for sale

News Search

Latest News

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

 
17
 
Jan
 

Fine paper business enters administration | ADMINISTRATION

Arjowiggins UK, which operates a number of trading companies...

 
15
 
Jan
 

Hawk Plant enters administration | ADMINISTRATION

The Shropshire company, that has previously undertaken landm...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

 
17
 
Jan
 

Fine paper business enters administration | ADMINISTRATION

Arjowiggins UK, which operates a number of trading companies...

 
15
 
Jan
 

Hawk Plant enters administration | ADMINISTRATION

The Shropshire company, that has previously undertaken landm...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources