Network Rail has agreed a multi-million-pound deal with The Arch Company (Arch Co) to transfer a portfolio of railway property assets across London, with proceeds set to be reinvested into Britain’s rail infrastructure.
The transaction strengthens the long-standing partnership between the two organisations and forms part of Network Rail’s strategy to grow commercial revenues while reducing reliance on public funding as the industry transitions towards Great British Railways.
London property portfolio acquired
The portfolio includes a range of railway arches and investment properties across London, including assets in Borough Market.
The properties accommodate a diverse mix of businesses, including light industrial units, retailers and food and beverage operators, and will be incorporated into The Arch Company’s existing investment programme.
The latest acquisition expands Arch Co’s extensive railway estate, which already comprises thousands of railway arches supporting businesses across England and Wales.
Reinvesting in the railway
Network Rail said income generated through the sale will be reinvested directly into the railway, supporting the maintenance and enhancement of Britain’s rail infrastructure.
The deal also reflects the infrastructure manager’s wider objective of increasing commercial income from its property portfolio as part of the rail industry’s ongoing reform programme.
Gary Bostock, Property Director for Network Rail’s Southern Region, said: “This is a fantastic result for both the railway and the customers who use it, alongside strengthening our partnership with Arch Co and making a valuable contribution to the future of Britain’s railway.
“Our relationship with Arch Co continues to deliver positive outcomes for both the estate and the communities it serves with this latest transaction being a great example of that partnership in action.”
Confidence in London’s railway estate
The Arch Company said the newly acquired assets complement its existing portfolio and reinforce its commitment to investing in London’s business communities.
Craig McWilliam, Chief Executive Officer of The Arch Company, said: “These assets are a natural fit with our existing estate and represent another significant investment in London. They bring a mix of established businesses and opportunities for future growth, underlining our confidence in the capital and the small businesses and entrepreneurs that drive its success.”
The agreement highlights the continuing value of the railway estate as a commercial asset, with property income playing an increasingly important role in supporting investment in the network while providing space for thousands of businesses operating beneath and alongside Britain’s railways.
