Some of Britain’s biggest property companies have joined at least 400 other objectors — including investors, landlords and tenants — to air their concerns over the £50bn London to Birmingham HS2 project.
The latest wave of corporate objectors delivered more than 4,000 pages of petitions to Parliament raising an arsenal of doubts about the high speed rail link. Heading the list of concerns are fears over a lack of compensation, property blight and that the scheme will scupper billions of pounds of new developments.
All the objections will be discussed by the HS2 Select Committee, which has the power to protect affected areas by amending the HS2 Hybrid Bill to change the line’s route.
Among the heavyweight objectors is Land Securities, the largest commercial property company in the UK. After being warned of potential compulsory purchase orders on its Hotel Ibis Euston and Novotel Birmingham Airport Hotel, it claims HS2 should not interfere with private property unless proven to be “necessary for the purposes of the bill and in the public interest”.
Derwent London, the FTSE 250-listed property investment and development business, is petitioning over a compulsory purchase order served on its site at 132-142 Hampstead Road, London. The company says it now “assumes an agreement will not be reached” on the blighting of the site and resultant compensation proposals.
Sydney & London Properties, which formed a partnership with US developer Related Companies in March to develop the area around Euston Station (pictured) has also objected. It argues that HS2’s plans for the area “are inappropriate, lack ambition, are inadequate and miss a rare opportunity to redevelop this gateway site”.
Other HS2 petitions include:
Chris Selway, a senior director at BNP Paribas Real Estate, which is advising 25 HS2 affected firms with land and assets totalling more than £600m, said the Government “would be wise to settle claims early in this rising investment market”. The petition process, however, means it could to be at least two years before businesses see any compensation.
In reply, HS2 Ltd said: “We are are committed to positive engagement with local communities, businesses and all other interested parties. It is an important part of the process that parties who feel they may be affected by the construction and operation of the railway are able to petition.”
