Britain’s biggest property players, including Land Securities, Derwent London and SEGRO, are among more than 400 new objectors to the £50bn HS2 project.
Major landlords, tenants, and councils this week lodged petitions to parliament totalling more than 4,000 pages objecting to the HS2 Hybrid Bill for the London to Birmingham high-speed rail link.
The petitions focus on a lack of compensation, blight and the scuppering of billions of pounds of new development.
The objections will be put before the HS2 Select Committee, which has the capacity to amend the bill, potentially altering the route to protect affected sites.
LandSec has objected to potential compulsory purchase orders on its Hotel Ibis Euston and Novotel Birmingham Airport Hotel. It said HS2 should not interfere with private property unless proven to be “necessary for the purposes of the bill and in the public interest”.
Derwent is petitioning regarding its site at 132-142 Hampstead Road, W1, which is subject to a CPO. The developer said it now “assumes an agreement will not be reached” on the blighting of its 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, NW1, 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”.
Chris Selway, senior director at BNP Paribas Real Estate, which is advising 25 firms with land and assets totalling more than £600m, said government would be wise to settle claims early in this rising investment market.
The petition process means it is likely to be another two years before affected businesses see any compensation.
HS2 Ltd said: “HS2 Ltd is 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.”
HS2 announced compensation proposals for homeowners in April, but did not include packages for commercial landlords.
The government upped its estimate for the cost of HS2 from £33bn to nearer £50bn last summer, with the property acquisition pot increased from £1.3bn to £2.8bn.
HS2 petitions
SEGRO has lodged a petition focusing on potential disruption to its tenants at Park Royal, NW10, during construction.
Prologis fears disruption to tenants on its Midpoint industrial park in Birmingham.
St Modwen is petitioning over its 1m sq ft Heartlands Parkway site in Birmingham, which would become a maintenance depot.
Councils including Hounslow, Hillingdon, Westminster, Hammersmith & Fulham, Camden, Coventry, Staffordshire and Warwickshire are also seeking changes to the bill.
Kensington & Chelsea said the line would scupper a £1.1bn development opportunity on Kensal Gasworks, W10, which HS2 wants for the relocation of a Heathrow Express Depot.
Sainsbury’s has objected to the effect on supermarkets in Camden, Euston and Hillingdon.
Royal Mail said its sorting offices in Camden, Brent, Ealing and Birmingham would be hit, threatening deliveries of mail.
BMW claimed vibration during construction would affect the production of engine parts at its site in Coleshill, Warwickshire.
HS1 is concerned about disruption to St Pancras station.
Zurich Assurance and Threadneedle Asset Management objected to CPOs at the Chandos Park Estate on Park Royal and the Pentagon on Castle Bromwich Business Park in Birmingham. Goya Developments and Scottish Widows Investment Partnership are petitioning over compensation for their Victoria Road Business Park site.
chris.berkin@estatesgazette.com
