Network Rail sells thousands of rail arches to two real estate groups for £ 1.5 billion – which could be the fear of small businesses they occupy with steep rental hikes
Matt Oliver for the daily mail
Network Rail sells thousands of rail arches to two real estate groups for £ 1.5 billion – evoking the fear that the small businesses they occupy can be hit by steep rental hikes.
The deal with Telereal Trillium and Blackstone Group includes approximately 5,200 converted arcs, with tenants ranging from hairdressers to bakeries and gyms.
But the sale has been strongly countered by the small companies located in the arches. Many have already been eliminated by major rises under Network Rail, which is owned by the state.
Fear: the deal with Telereal Trillium and Blackstone Group includes about 5,200 converted arcs
Last night, critics urged ministers to intervene and stop sales or introduce restrictions that would protect small businesses.
Campaign group Guardians Of The Arches, which represents companies based in the arches, said: "Throughout this process, we have tried to ensure that small businesses are truly protected so that the arches can thrive.
We trust [Blackstone and Telereal Trillium] will comply with their intention to place tenants first. & # 39;
Labor spokesman Rachael Maskell of Labor condemned the sale as a short-term decision that will undermine the financial sustainability of the railroad and harm small and medium-sized companies. She said: "Archways are both an asset and an income stream for Network Rail, so this step is highly irresponsible. The Minister of Foreign Affairs must intervene and prevent this sale. & # 39;
In a joint statement, the companies said: & # 39; We will remain particularly sensitive to the small businesses that are long-term tenants of the Network Rail estate and are committed to ensuring that the unique value they provide to their local community is maintained. & # 39;
Sir Peter Hendy, President of Network Rail, said the deal "for the tenants significant involvement and investment." means.
A government spokesman said: & # 39; Tenants' rights are guaranteed and all current agreements will be fully complied with. & # 39;