More than 50 companies have expressed an interest in partnering Transport for London (TfL) in developing the thousands of acres it owns across the capital, Deloitte reports.
The search for development partners was launched last year by the Mayor of London and the transport system operator as part of its plan to generate almost £3.5bn in non-fares revenue over the next decade. By the time the initial deadline closed on 19 March. TfL had received 50-plus pre-qualification questionnaires (PQQ) from what it describes as “a broad range of leading property companies”.
TfL — which wants to use the commercial revenue to keep down fares — is now assessing the responses and will invite successful parties to get involved in the next stage of the procurement process. Shortlisted companies will then be asked to participate in “competitive dialogue” before submitting final tenders. TfL says it will appoint its partners this winter.
With a landbank of almost 6,000-acres the transport organisation is one of Greater London’s largest property owners. In a statement it said: “The tender process was used to identify a number of Framework Development Partners to work with us to realise the maximum value of TfL’s assets to generate long-term revenue to reinvest back into the transport network.”
Parallel to this summer’s selection framework, TfL is also strengthening its property development team and is currently recruiting senior development professionals. Once the preferred partners have been chosen, the in-house team will work with the companies to develop at least 50 sites across the capital — potentially offering around 10-million sq ft of space between them.
“We have had a fantastic response to our tender,” commented TfL’s director of commercial development, Graeme Craig. “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 London 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.”
Craig said that with London’s population at a record high of 8.6-million, and forecast to reach 10-million by 2030, it is vital that public authorities such as TfL use their assets to develop the full range of infrastructure requirements, whilst generating revenue to keep the growing population moving.
It’s estimated the TfL property partnerships will generate approaching £4bn in construction and development contracts. Other departments within the Greater London Authority will also be able to use the framework for their own sites and projects.
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