TfL to tap £1.7bn portfolio for surplus sell-off
Transport for London has confirmed plans to boost its commercial development with new funding to press on with its residential development and a mandate to “maximise” new activity.
The transport provider has been asked to identify new projects across its £1.7bn portfolio of non-operational assets that can be considered for sale, with a deadline of 11 January.
Earlier this month, TfL clinched a £1.8bn government support package, following major revenue losses during the coronavirus pandemic. The emergency funds acted as a green light, allowing TfL to press on with its 10,000-home residential strategy, including its 3,000-home build-to-rent joint venture with Grainger.
Transport for London has confirmed plans to boost its commercial development with new funding to press on with its residential development and a mandate to “maximise” new activity.
The transport provider has been asked to identify new projects across its £1.7bn portfolio of non-operational assets that can be considered for sale, with a deadline of 11 January.
Earlier this month, TfL clinched a £1.8bn government support package, following major revenue losses during the coronavirus pandemic. The emergency funds acted as a green light, allowing TfL to press on with its 10,000-home residential strategy, including its 3,000-home build-to-rent joint venture with Grainger.
However, it falls short of the £2bn that London mayor Sadiq Khan says TfL will lose during the period.
Transport secretary Grant Shapps has asked TfL to maximise its development activity and identify surplus assets for sale to ensure TfL is financially sustainable by 2023.
TfL’s non-operational land assets are held on its balance sheet, valued at £1.7bn at 31 March 2020. They comprise £1.4bn of commercial property, £120m of car parking space and £183m for its head office buildings.
It will target surplus stock that is not revenue generating and not required for safeguarding activity, to be included in a single management plan to shore up its finances.
TfL has already launched a hunt for ideas to repurpose its estate of car parks around its stations. The business has confirmed it is not currently looking to redevelop the 79 car parks, but is seeking potential operators to lease the space, with potential ideas around logistics, community hubs and neighbourhood kitchens.
Graeme Craig, director of commercial development at TfL (pictured), said: “As part of the funding settlement agreed with the government, we have been asked to maximise our commercial development activities, including considering if land that isn’t needed for transport or revenue generation could be sold.
“This activity forms part of our wider plans for establishing TfL’s long-term financial sustainability, and we continue to explore how our land could help deliver thousands of new homes and high-quality commercial spaces across London. This is helping to generate long-term revenue which is then reinvested into the transport network.”
TfL announced plans to deliver 10,000 homes across 300 acres of land in 2015, targeting £3.4bn in commercial revenue through joint venture partnerships. At the end of March its investments into property development joint ventures were valued at £202m.
It is currently pressing ahead with plans for Arnos Grove, in north London, as one of four most advanced schemes with Grainger, as well as plans for 450 affordable homes in Wembley with Barratt London, which will both be debated at planning committees this week.
Craig added: “Our funding settlement with the government enables us to continue our commercial development programme to bring forward more than 10,000 new homes and new commercial space, which will help us to generate long-term revenue to reinvest in the transport network.”
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Photo © Transport for London
