Rail industry facing profound property rationalisation

Posted: 20/04/2006

Britain's privatised railway industry is going through a process of rationalising its property requirements.

According to Douglas Blausten, Senior Partner of property consultancy Cyril Leonard: The changes, disposals and acquisitions are profound, but the need to find real value from property resources has never been greater.

Cyril Leonard is intimately involved in this area and with wide expertise of developing a positive income flow for the rail industry from surplus property.

The firm has recently been working on a number of rail related projects including:

- Working to dispose of ALSTOM's 22 mile test track in the East Midlands.
- Finding new uses for ALSTOM's Washwood Heath manufacturing unit - the production centre for Virgin's Pendolino trains.
- Working with Carillion Rail and, formerly, GT Rail Maintenance on professional property advice including rent reviews, lease renewals, business rates and acquisitions.
- Siting ALSTOM Transport Information Solution's new Birmingham offices in the former Network Rail building, now refurbished, Quayside Tower.
- West Coast Train Care - providing lease advisory services to the company on a number of properties across the country from London to Glasgow.
- Mainline station based Whistlestop stores and Medicentres - providing professional and rating advice.
- Working with Highpoint Rendel and other contractors on a consortium bid on a major Transport for London project.
- Metrotrains - acquiring new property.

Cyril Leonard has also been assisting Eurostar find a 20-30,000 sq ft warehouse within a 20 minute drive of King's Cross.

The request is on behalf of the catering division of Eurostar and the specific requirement is for a single storey building within 20 minutes journey time from King's Cross St Pancras station where the terminal will be relocated in 2007.

Said Associate Partner Peter Kauffer: 'Ideally we are looking for a property located in Camden, Islington or Haringey having an eves height of 7m, with good site coverage and dock loading suitable for the several 15cwt lorries that will be regularly servicing the outward bound trains.'

Kauffer said that three properties were currently being closely looked at. He added: 'But we would welcome any further options with occupation provided no later than February 2007.'

These and other projects in the sector have given Cyril Leonard a unique insight into the railway property scene today. If you would like to hear more please contact David Wallen or Ross Clarke on 020 7630 1100 or e-mail info@livepr.net