Network Rail has sold a portfolio of London properties including Borough Market and a number of railway arches to Blackstone business The Arch Company in a “multi-million-pound deal”.
“These assets are a natural fit with our existing estate and represent another significant investment in London,” said Craig McWilliam, chief executive of The Arch Company.
“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.”
US investor Blackstone and TT Group acquired a portfolio of 5,200 arches from Network Rail for £1.46bn in 2018, forming The Arch Company joint venture.
At the time of purchase, only 3,800 arches were deemed usable for tenants, with the remainder requiring refurbishment. Blackstone has since bought out its former partner to take full ownership of the business.
Proceeds from the sale will be reinvested directly back into Britain’s railway infrastructure, Network Rail said.
Gary Bostock, property director for Network Rail 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.”
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