The rail operator is looking to establish its first 50-50 joint venture with a developer for eight of its station sites, which is part of a £4bn, 10-year overhaul of the station network.

The project is expected to attract interest from large property developers such as Land Securities, British Land and Hammerson, as well as brownfield site developers such as St Modwen given the nature of the land around the stations.

“This is the first deal of its kind for Network Rail,” said Mick Martin, director of commercial property.

“By creating a genuine partnership with our commercial partner, with each of us retaining a 50 per cent stake, we will maximise the value of the chosen sites and develop a sustainable income stream for improving the railway for years to come.”

Network Rail owns some attractive development sites owing to its stations’ locations.

The sites initially earmarked for development are Twickenham, Guildford, Wembley Cutting, Walthamstow Central, Enfield Town Station, Epsom, Maidstone East and Paddington Enterprise House. In total, there are about 20 acres of development land.

Iain Coucher, chief executive, said: “Together we will build a long-term relationship to unlock the potential of our many inner city sites.”

The rail operator has already signed development agreements for several London stations, including Euston and Victoria. In the past, Network Rail has signed development agreements for its stations rather than entering into shared ownership schemes.

Network Rail will contribute the land as its half of the deal, the value of which will be matched with cash by its development partner.

The rail operator said it would work closely with train operating companies to optimise benefits for passengers.

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Network Rail looks for partner to develop brownfield sites

Builder & Engineer: 16 October 2007

Network Rail has begun its search for a development partner to work on improving its stations on brownfield sites across London and the South East.

The sites initially earmarked for development are Twickenham, Guildford, Wembley Cutting, Walthamstow Central, Enfield Town Station, Epsom, Maidstone East and Paddington Enterprise House.

Well connected to public transport, regeneration of these railway lands will support sustainable development. It will also create an additional revenue stream for future investment into the railways, which according to Network Rail will not place additional burdens on the fare- or the taxpayer.

Mick Martin, director of Commercial Property, Network Rail, said: "This is the first deal of its kind for Network Rail. By creating a genuine partnership with our commercial partner, with each of us retaining a 50% stake, we will maximise the value of the chosen sites and develop a sustainable income stream for improving the railway for years to come.

"We are determined to simplify the development process and reduce the cost and time taken to deliver successful and profitable developments. This joint venture will expedite real improvements to stations and facilities for local communities, and is the first of many changes we will make to improve value creation from our assets."