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

Consulting Engineers Focused on the Built Environment
London, UK

Unusual opportunity to acquire this national and well established, full service Mechanical & Electrical consulting engineering company. Offers invited.

Asking Price: £2,700,000
Turnover: £5,800,000

LEASEHOLD


Freight Brokerage Services
UK Wide

Works with a network of reliable hauliers to provide comprehensive and reliable logistics solutions on a national basis. Offers invited.

Asking Price: Offers Invited
Turnover: £420,000

RELOCATABLE


Food Manufacturer Specialising Flatbread Products
North of England, UK Wide

Has established a prominent position with clients in its industry due to its prestigious portfolio. Operates from two leasehold premises. Offers invited.

Asking Price: Offers Invited
Turnover: £671,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
23
 
May
 

Fintech company Loot collapses into administration | ADMINISTRATION

After failing to secure further backing from the Royal Bank ...

 
22
 
May
 

Spike in M&A activity in the education sector | BUSINESS SALE

In recent months, the education sector in the UK has witness...

 
22
 
May
 

Jamie Oliver restaurant empire collapses into administration | ADMINISTRATION

Celebrity chef Jamie Oliver, who shot to fame after campaign...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
23
 
May
 

Fintech company Loot collapses into administration | ADMINISTRATION

After failing to secure further backing from the Royal Bank ...

 
22
 
May
 

Suppliers expected to follow British Steel into insolvency | ADMINISTRATION

News that British Steel is to be placed into the hands of ad...

 
22
 
May
 

Jamie Oliver restaurant empire collapses into administration | ADMINISTRATION

Celebrity chef Jamie Oliver, who shot to fame after campaign...

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