Network Rail picks developer and shortlists British Land and Chelsfield Partners at Euston
Hammerson is the hot favourite to deliver a commercial scheme as part of an overhaul of London’s Victoria station
The FTSE 100-quoted property company heard on Wednesday night that it is front-runner to partner Network Rail on a mixed-use redevelopment of around 800,000 sq ft (74,322 sq m) at the station. As part of the scheme, the station itself will be redeveloped into a modern transport hub.
Hammerson beat a heavyweight list of rivals for Victoria, including Land Securities, which was widely tipped owing to its land holdings in the area. Development Securities and Lipton’s former firm Stanhope were also shortlisted.
A spokesman for Network Rail said: ‘While none of the developer companies shortlisted for the projects have been ruled out, Network Rail is taking discussions further with two potential partners for Euston and one for Victoria. A preferred partner for each station will be appointed by the new year.’
The decision means Hammerson will once more be joining the rail authority on a public-private project. Hammerson drew up a 1.5m sq ft (139,353 sq m) scheme four years ago for Euston station with Network Rail’s predecessor Railtrack. But the agreement ended after Railtrack went into administration, and Hammerson eventually sold its land holdings.
The competition between the two will be fierce, as Sir Stuart Lipton’s experience in developing schemes such as Broadgate in the City of London, which was sold to British Land, will be tested by British Land’s status as the UK’s second biggest quoted group.
The two will compete to develop a 14.8 acre (6 ha) site north of Euston Road, which has a development cost of up to £500m.
The two redevelopments are part of a wider plan to generate £4bn through commercial development of Network Rail’s stations, in a bid to improve the rail network.
Network Rail’s head of station development Ian Lindsay said: ‘We are confident that the eventual plans for each station will enhance the user experience and meet the challenges of higher passenger numbers and public demand for new and upgraded amenities.’