Londoners are set to become shareholders in a raft of major property developments thanks to an initiative due to be unveiled on Wednesday by City Hall and Transport for London.
Plans drawn up by Graeme Craig, TfL’s head of commercial development, will see taxpayers form a series of joint ventures to redevelop up to 50 sites owned by TfL.
The transport agency owns one of London’s biggest and most valuable property portfolios which spans more than 5,700 acres. This includes land and buildings on and adjacent to Tube stations and railways as well as high street locations.
Rather than sell off surplus land or development rights above stations, TfL plans to retain an interest in sites being redeveloped as part of its efforts to generate £3.4bn in commercial revenue over the next decade.
Around two-thirds of the sites earmarked for development are situated in Zones 1 and 2. Some will be used to meet demand for housing from London’s growing population while others will be used to support the city’s economic growth.
The plans build on TfL’s partnership with Capco to redevelop the Earls Court area which includes the controversial demolition of the historic exhibition centre.
Next month TfL will invite tenders from developers with a view to appoint “a small number” of partners to work on the projects.
Commenting on the plans, Mr Craig said: “London’s population is set to grow from 8.4m today to 10m by 2030, the equivalent of one full Tube train arriving every three days.
“To enable this, London needs more homes and office spaces and the transport network needs sustained, long-term investment.
“Forming joint venture partnerships with property development experts will enable us to generate long-term income that we can invest in improving our network, which carries over 30 million journeys every day.
“We will be launching a tender process in the coming weeks to identify the best organisations in the world that will help us to achieve this.”
Mayor Boris Johnson, who also serves as Chair of TfL’s board, said: “TfL’s role is to look to the future, ensuring that transport continues to support jobs, homes and economic growth across the capital and the UK.
“The ambitious plans to redevelop some of TfL’s land and assets presents a fantastic opportunity to support this important work and ensure public land creates homes for Londoners.”
TfL has also announced that Francis Salway, former Chief Executive of Land Securities Group, will head a new property advisory group which will help the agency develop its property strategy.
Announcing Mr Salway’s appointment, TfL’s Managing Director of finance, Steve Allen said: “I am delighted that Francis is joining TfL to head up our new non-executive property advisory group.
“He is one of the most respected people in commercial property, and he will bring a wealth of practical experience to TfL as we embark on an ambitious programme of property development.”