TfL receives huge response in search for property partners
The Mayor and Transport for London (TfL) launched a search for property development partners as part of an ambitious programme to generate £3.4bn in non-fares revenue over the next decade. As the first stage of the tender closed on 19 March TfL had received over 50 pre qualification questionnaires (PQQ) from a broad range of leading property companies. The revenue generated will be reinvested back into the transport network and help TfL and the Mayor to bear down on fares.
TfL owns around 5,700 acres of property in London, making it one of London's largest landowners. The tender was to identify a number of Framework Development Partners to work with to realise the maximum value of its assets to generate long-term revenue to reinvest back into the transport network. TfL is now assessing the PQQ responses and will invite successful parties to the next stage of the procurement process. Those that are shortlisted will be asked to participate in competitive dialogue, then a selected number will be invited to submit final tenders. TfL expects to appoint partners in late 2015.
TfL is strengthening its property development team and is currently recruiting senior development professionals. Once the Framework has been established TfL will work with the property developers to take forward 50+ sites with development potential across the Capital. The sites that TfL will bring forward will have around 10 million square feet of development potential.
Graeme Craig, Director of Commercial Development at TfL, said: `We have had a fantastic response to our tender. We have started evaluating the PQQs and the number and quality of companies who have submitted is impressive. When we have our Framework in place it will provide the opportunity to develop some of our assets across the Capital to help us realise the long-term value of our estate whilst creating the houses, jobs and economic growth to support London's growing population.'
With London's population at a record high of 8.6m and forecast to reach 10m by 2030 it is vital that public authorities such as TfL use their assets to develop the full range of infrastructure requirements that will be needed, whilst generating revenue to keep the growing population moving.
The TfL Property Partnerships framework is worth up to £3.6bn. Over the next ten years TfL is expecting to generate net proceeds of £3.4bn to reinvest back into its transport network, of which a third is currently assumed from property development. Other members of the GLA group will also be able to use the framework for their own sites.
Notes to editors
- A video explaining why TfL is taking this new approach is available at https://www.youtube.com/watch?v=S8tGcubHBMo&feature=youtu.be
- Deloitte Real Estate is supporting TfL through this process.
- TfL has a unique range and scale of assets within its property portfolio which include:
- Listed buildings that offer the opportunity for residential conversion;
- Mixed use and residential developments over stations and depots;
- Major regeneration schemes in urban centres;
- Brownfield developments in inner and outer London.