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Saving For a Space Ship

Network Rail sells railway arches for £1.5bn to Blackstones - Housing Conversions ?

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Network Rail sells railway arches for £1.5bn  

https://www.bbc.co.uk/news/business-45477907

i'm wondering if the long term plan is to kick out retailers & convert arches to housing ? 

Quote

Underneath the arches: 800 new homes planned for Bermondsey as London's network of 10,000 neglected railway arches start to be transformed

https://www.homesandproperty.co.uk/property-news/buying/new-homes/new-homes-with-character-vaulted-railway-arches-and-crumbling-viaducts-are-transforming-the-capitals-a99051.html

South-west London: new homes in railway arches

Battersea Exchange, between  Battersea Park and Queenstown Road stations, similarly makes a virtue out of listed railway arches. 

Taylor Wimpey, the developer, is creating a new car-free street lined with shops and cafés facing 10 buildings with 290 homes. Prices from £790,000. Call 020 3053 0745.

Meanwhile, architects are turning their attention to a new challenge — that of creating homes within railway arches. An amazing prototype home and studio for a photographer has been resourcefully squeezed into an arch in Southwark. 

Designed by Undercurrent Architects and clad in rusty Corten steel with a highly insulated inner skin, the 1,600sq ft space is acoustically protected from the noise of the trains that go rattling past during the day.

 

 

Edited by Saving For a Space Ship

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Don't know but the sale isn't economically logical, as only predicated on Network Rail's inability to borrow the money. They're state assets with a perpetual and non-maximised income stream, yet the private equity buyers will likely borrow to buy them at a rate higher than Gov could achieve. 1.5bn * 30y Gilt yield = £27.75m pa interest costs. Current annual profit of £70m and 900/3700 arches currently vacant. Almost by definition has to be bad long-term value.

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Apparently private hands can run them more efficiently than public hands. Hmm, I wonder where we've heard that before.
Even if this were true, surely it would be cheaper to just change the management and strategy but then the spivs wouldn't get as much cake from the taxpayers.
 

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... and for passengers and taxpayers it will mean massive, essential improvements without an extra burden on the public purse."

Some guff about Network Rail selling to raise money for rail investments, which is probably crap as the £1.5Bn cash will be used to manage the existing £50Bn of debt... ie. to enable more debt.

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AHA !!

London's Housing Crisis Means Railway Arches Are Now Being Turned Into Homes (due to loop hole)

https://www.buzzfeed.com/jimwaterson/londons-housing-crisis-means-railway-arches-are-now-being-tu

Quote

London's housing market has reached the point where property developers are now taking advantage of a loophole in the law to convert railway arches into homes without planning permission.

Two railway arches in south London, close to Elephant & Castle, have been automatically granted planning permission to be turned into houses after developers realised it was possible to take advantage of a law passed to encourage the conversion of disused office blocks into flats.

The two Victorian railway arches near Walworth Road, which are currently bricked up and used for storage, will soon be converted into houses, each with two bedrooms. The eventual price of the flats is unknown although other two bedroom flats in the area sell for over £360,000, in a sign of the high cost of London's property market.

Tom Copley, Labour's London housing spokesperson, said converting railway arches into homes was an extreme example of London's housing crisis: "Permitted development is not only leading London towards a crisis in office and commercial workspace, it is allowing some property owners to cash in renting 'homes' that are wholly unsuitable for living in. The government must urgently revisit permitted development rights and allow London an opt out. If this case doesn't make ministers think again, what will?"

Railway arches have already become a battleground in London's gentrification battles, with traders in Brixton complaining about being pushed out as landlords seek new uses for the spaces – although the arches are generally used for offices or shops, rather than new housing.

The proposed flats will both have limited windows, on account of them being built inside a railway arch and planning documents say the noise levels are "high" when trains pass overhead...

they just need Deaf tenants to Let to ..

 

Edited by Saving For a Space Ship

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“....,In the arch next to his is a hairdresser, on the other side a letting agent.

The site has a damp problem, trains rumble overhead every 10 minutes - and if they stop his mobile signal cuts out entirely.”

Sounds delightful. 

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22 hours ago, Oki said:

The rich have always made the poors sleep under bridges. Charging them half a million is a new twist.

you don't understand!

bilbo baggins said in the advert that these would be the place to be, with kale smoothie bars next door as well

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24 minutes ago, oracle said:

you don't understand!

bilbo baggins said in the advert that these would be the place to be, with kale smoothie bars next door as well

Can't think of much that would be worse.....but am sure they will try to sell it as the best thing since sliced bread.....😉

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On 11/09/2018 at 11:14, guest_northshore said:

Don't know but the sale isn't economically logical, as only predicated on Network Rail's inability to borrow the money. They're state assets with a perpetual and non-maximised income stream, yet the private equity buyers will likely borrow to buy them at a rate higher than Gov could achieve. 1.5bn * 30y Gilt yield = £27.75m pa interest costs. Current annual profit of £70m and 900/3700 arches currently vacant. Almost by definition has to be bad long-term value.

Yep. It’s pure ideology - the private sector is more efficient dontchaknow? Although selling off railway arches is definitely scraping the bottom of the barrel when it comes to selling off state assets.

“The trouble with neoliberalism is that you eventually run out of other peoples’ assets” (or something).

 

 

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1 hour ago, jiltedjen said:

what happens if the arches develop structural problems? which could stop the railway?

turn up in a day and rip your home down to fix it? 

Suppose that's no different to flats, so whether that should be a worry or not depends on how likely it is. There are already businesses, lock-ups etc. under railway arches and have been for years, how often do they get kicked out for repairs?

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On 11/09/2018 at 19:32, Ash4781 said:

“....,In the arch next to his is a hairdresser, on the other side a letting agent.

The site has a damp problem, trains rumble overhead every 10 minutes - and if they stop his mobile signal cuts out entirely.”

Sounds delightful. 

Yep

sounds like mobile communications could be a big problem 

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  • 149 Brexit, House prices and Summer 2020

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      • down 5% +
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      • Even
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      • up 5%



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