Transport for London opens tender for prime London real estate portfolio
TFL, or Transport for London, have finally begun the process of opening up some of its extensive property portfolio to tender, in an attempt to raise billions for the development of London’s transport infrastructure over the next decade. Many of sites include buildings next to tube stations, in prime London locations, mainly zones 1 and 2.
The proposed redevelopments are to occur at 50 of the company’s 3,000 sites and although not necessarily seen as a property company, the extent of the assets owned by TFL makes it one of the largest property owners in the capital, with the 50 sites marked for redevelopment covering an area of 10 million square feet.
Steven Allen, TfL’s managing director for finance, said: “The scale of this is enormous. It will never be TfL’s prime purpose, but if you own over 5,000 acres of land, then you are a property company”.
The company is hoping to raise over £3 billion in revenue through the projects, which it is estimated will take up to a decade to complete. On Monday next the bidding process will open and those tendering for the opportunity to partner with TFL are expected to participate in the building of ambitious projects such as luxury apartments and shopping centers, many of which will be placed beside or near existing tube stations, giving a major boost in revenue to TFLs coffers. With regard for the need for increased revenue Mr. Allen said:
“This is about developing a revenue stream that can reduce our reliance on farepayers and taxpayers,”
With the population of London set to reach 10 million by 2030 it is easy to see why extra revenue will be needed to ensure investment in London’s transport network continues. Highlighting the need for such investment, Graeme Craig, TfL’s director of commercial development said
“London needs more homes and office spaces and the transport network needs sustained, long-term investment”.