Telereal Trillium and Blackstone Property Partners have today launched the Arch Company as they complete the £1.5bn purchase of 5,200 properties from Network Rail.
The joint venture beat competition from Li Ka-Shing’s CK Asset Holdings, Ellis Short’s Kildare Partners and Guy Hands’ Terra Firma Capital Partners to acquire the collection of railway arches across England and Wales.
The controversial sell-off faced – and still faces – opposition from local retailers and protest group Guardian of the Arches over fears it would lead to small, local retailers being displaced as rents became too expensive.
The Arch Company has promised a “tenant’s first approach” to managing the portfolio and has today launched two-month consultation with tenants and local communities and authorities.
The firm said that results of the consultation, which closes on 4 April, would feed into a new enhanced Tenants’ Charter, which will outline how the Arch Company will work with the thousands of small businesses housed in the converted railway arches.
The group said it would also be investing in the several hundred currently unused arches, opening them up to provide space for “many more entrepreneurial small businesses to start up”.
Adam Dakin, director of the Arch Company and managing director of new business and services at Telereal Trillium, said that he believed that the long-term success of the new company rested on the relationships it built with its more than 4,000 tenants, the local communities and local government.
“We want to get our new relationship with our tenants off to the best possible start by listening to their views. The estate is unique in its character and we are excited by the tremendous opportunity for us to contribute to its continued revitalisation, recognising the role our tenants play in stimulating economic activity at the heart of their local communities.
“We strongly believe that supporting successful small businesses and ensuring they flourish over the long term will be crucial to our success. As Britain’s largest small business landlord, we are eager to create an environment in which our tenants thrive.”
READ MORE: The Arch Company eyes microbrewery network and tenant ‘production line’
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