Network Rail Property gains its independence

Network Rail has created a new property company and has tasked it with raising £1.8Bn to fund network improvements.

Network Rail Property will be established as a property company with its own board that will be able make decisions independently on investments and sales of Network Rail’s estate.

It is hoped that the new set up will allow Network Rail to increase its property activities and raise £1.8Bn through the disposal of various assets. The money will be ploughed back into funding the Railway Upgrade Plan.

Network Rail say the new venture will bring “greater focus on plans to deliver land for housing, while continuing to generate income from Network Rail’s other property assets to reinvest into the railway.”

The Authority will now be free to concentrate its attention on running and maintaining the UK’s railway network.

Network Rail Property went live on 1 April and is being headed up by Managing Director David Biggs. The new board will be chaired by Chris Gibb, a non-executive director of Network Rail since 2013, who has more than 35 years experience in the rail industry.

David Biggs, Managing Director of Network Rail Property, said: “A bigger and better railway requires significant investment and Network Rail is generating an extra £1.8Bn to help fund the Railway Upgrade Plan, mostly through the sale of property assets where continued Network Rail ownership is not essential to running the railway. This means Network Rail can focus on its core business of running a safe, reliable and growing railway that is vital to Britain’s economic health.

“Our new property company will have greater powers to unlock land for homes, drive economic growth in towns and cities and reinvest money into the rail network to help fund the Railway Upgrade Plan. It will mean that investment or asset disposal decisions can be made at the right level within the organisation in a timely way while ensuring appropriate oversight is in place.”

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