Railtrack--privatised in the 1980s by Margaret Thatcher--was taken back into public ownership last year following the Hatfield rail disaster. Now the government has agreed a price with the former shareholders and plans to turn the company into a not-for-profit organisation within the private sector.

Railtrack Developments was set up three years ago by Managing Director Helen Gordon to develop surplus real estate arising out of Railtrack. The development company's assets include over 20 development sites located in major city centres across the UK. JLL said these sites offer a very attractive pipeline for a significant future development programme focussed around major transport nodes.

Rupert Clarke, Managing Director of Jones Lang LaSalle Corporate Finance said: "The proposed sale of Railtrack Developments offers a rare opportunity to acquire a business with a substantial city centre development pipeline and a highly experienced specialist development team."

And the process of raising money from property at Railtrack has already begun with the £40 million ($62 million) sale of Railtrack's 50% stake in Phase 12 of Broadgate in the City of London to development partner British Land. The site at 201 Bishopsgate is the last major piece of undeveloped land on the Broadgate estate. British Land has submitted a revised planning application for the development which increases the net floorspace to 737,300 sf.

British Land's Chief Operating Officer John Weston Smith said: "The building at 201 Bishopsgate, which we expect to generate a considerable surplus, will offer unrivalled accommodation to both professional and financial occupiers.'

Instant Insights /

Property Sale to Help Fund Railtrack Reorganisation

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