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Blackstone concludes an agreement to take total control of a portfolio of 2 billion pounds sterling of more than 5,000 British rail arches, reached his partner five years after an agreement which symbolized the advance of the Private Equity American in the economy British.
The American private capital group, which is the largest commercial real estate investor in the world, agreed to buy half of the portfolio of the TT group, which the two investors acquired Network Rail for 1.5 billion pounds Sterling in 2019 , according to people familiar with the issue.
The transaction would imply that Blackstone would buy the participation of TT in The Arch Company, owner of the portfolio. The agreement, reported for the first time by Green Street News, has not yet been finalized.
The brick arches under the railway lines are an emblematic part of the British street landscapes and are home to a range of small businesses, from micro-breweries to automotive repair workshops and hairdressers.
The sale of Network Rail of the vast portfolio has become symbolic of the growing role of Private Equity in the British interior economy, making blackstone and the owner to thousands of small businesses.
The agreement brought a greater investment in the arches, but also raised concerns about more aggressive management and rent increases.
Some small businesses have been faced steep rent Increase because they dealt with the difficulties of the COVVI-19 pandemic.
The company Arch at the time offered some occupants to rent a vacation and created a fund of difficulties to help companies in difficulty. He also negotiated a “tenant charter” with the Guardians of the right Archs Association.
The new owners have also invested massively in the portfolio. Some 1,400 arches were abandoned when Network Rail agreed and is now brought back into service.
The TT group, owned by the Pears family and formerly known by the name of TV Trillium, is one of the largest private real estate investors in the United Kingdom, with a portfolio worth more than 9 billion pounds sterling.
The group seeks to release capital for new investments while Blackstone would prefer to have complete portfolio control, said one of the people familiar with the issue.
Blackstone and TT refused to comment.