2. Contents
02 Managing Director’s review
05 Winning awards
06 Our strategic framework
08 Commercial Estate – Making unique
places extraordinary
10 Development – Regenerating land
to make unique places
12 Planning and Land Services
– Planning for growth
14 Property Services – Delivering
successful property solutions
16 Retail – Creating destination stations
18 Workplace Management – Delivering
great workplaces for our people
20 Property objectives for 2015/2016
21 Income and expenditures CP5
22 Safety and performance
23 A better railway for a better Britain
24 A growing network of stations
3. Managing commercial rental
properties that generate income
and help protect the railway
Optimising capital receipts and station
enhancements from the development
of surplus properties and land
Supporting the delivery of property
and railway infrastructure projects
through the provision of professional
planning and land advice
Acquiring land and property rights
and leading the development of land
use strategies, in support of the routes,
rail investment projects and freight
Driving investment at managed
stations and managing commercial
contracts to maximise income and
improve passenger satisfaction
Creating and managing workplaces
that enable Network Rail employees
to achieve their full potential
All figures are current as of 31 December 2014
All of the profits from our
commercial activities are
reinvested in the railway,
helping to reduce the cost
of rail travel to the fare and
tax payer, and supporting the
creation of a better railway
for a better Britain.
Delivering for our customers
provides a summary of our
performance and celebrates
some of our key achievements
during 2014/15. It also
provides a look to the future,
delivering the vision and
strategic direction for Property
over the five years ending
March 2019 (CP5).
Like all success stories,
teamwork plays a huge part
in our work. Network Rail
Property is a proud member
of the following
organisations:
Delivering for our customers
Property is at the heart of delivering Network Rail’s
ambitions for the railway.
1Network Rail Property Delivering for our customersMaking unique places extraordinary
4. The continued growth in rail travel is
recognition of the level of service now
offered to customers by the rail industry
and societal changes in terms of continued
urbanisation, the need to be constantly in
touch (the digital age) and societies drive
towards a more sustainable future.
Our stations and land assets will play a
key role in the future growth of the rail
network whether it be providing world-
class modern station environments which
provide the facilities that meet the
expectations of modern customers,
providing space for business and
communities to grow and prosper or
optimising our land use to both facilitate
the expansion of the railway and provide
a growing and important source of
funding for the railway, thereby reducing
the burden on tax payers.
The following pages not only set down our
strategy as to how we will help grow and
modernise the railway, but also how and
what we will do to achieve it. We have
wonderful historic buildings and assets and
our goal is to make these unique places, not
just fit for purpose, but places where people
and businesses can enjoy and prosper;
making unique places extraordinary.
Our strategy
We are recognised as a leading specialist
transport property organisation – a rail
estate landowner and developer, and a
service provider to the transport industry
both nationally and internationally. Our
strategy is therefore to build on this core
expertise in property in the railway
environment to not only provide class
leading, safe environments for our
customers (rail passengers, tenants and
neighbours), but to generate from this
core expertise a sustainable income
stream that will fund the railway for
generations to come.
We have an ambitious growth orientated
business plan based on optimising the
commercial return from railway assets
and, in such cases, it is essential we are
very focused on our core business (where
we have core expertise and are able to
add value). So, for example, we will
continue to grow our retail estate at our
stations but we are not shopping centre
managers or developers, we will continue
to create space for SME businesses to
grow and thrive but this is only around our
core railway asset base (arches and other
railway related buildings) and we will
develop surplus land in and around the
railway working with development
partners recognising their skills and
experience to both minimise risk to the
railway yet optimise returns and help
bring forward much needed brown field
development sites. And these core railway
improvement income-generating activities
are undertaken at the same time as we
provide office facilities and land and town
planning services to colleagues to help
Network Rail deliver a better railway for
a better Britain.
We have three strategic priorities:
—— Significantly grow our income and
thereby our sustainable funding of
Network Rail (The Revenue Model);
—— Provide high quality professional property
services that help to reduce industry
costs, improve the passenger experience
and create great places for businesses
and communities to thrive making
unique places extraordinary; and
—— Delight our customers by putting them
at the heart of everything we do.
Our approach revolves around excellent
asset management, setting standards for
safety, sustainability, quality and service,
and achieving those standards in a way
that creates maximum value for the railway.
David Biggs
Managing Director
Managing Director’s review
The railway continued to grow throughout Control
Period 4 with 1.6 billion passengers using the rail
network in 2013/14 which is anticipated to grow
to two billion passengers per annum within five years.
£1.7bnWe will generate over CP5
2 Network Rail Property Delivering for our customers Making unique places extraordinary
5. We have put forward an ambitious growth
agenda for the next five years taking
advantage of the expanding network and
demand for rail transport but more so
taking advantage of customers’ demand
for convenience; working on the go and
the need to have what they want at hand
in their time poor, busy lives.
Our goal is to double our funding
contribution to Network Rail within five
years and outperform our business plan.
In an unpredictable economic environment
and a growing railway, this is a bold goal
that will require our people to learn new
skills, to manage risk effectively and take on
clear accountability yet pursue new ways of
working while continuing to improve the
quality of service for our customers.
Our people
Our people, who are among the best
in the industry, are vital to our success.
The enthusiasm and commitment that
everyone in Property brings to work every
day allows us to create value for the
railway and deliver for our customers.
This year, we began a journey to create an
environment in which our people can grow
and develop to their full potential, instilling
pride in what they do.
We live and believe in the Network Rail
behaviours of customer driven,
collaborative, accountable and being
prepared to challenge.
Safety
A safe business is good business; we
strongly believe this and our asset
management policies and procedures are
intended to deliver an estate that is safe
for our customers to use and enjoy and
safe for our people to manage.
220
275
300
250
325
375
350
400
450
425
09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19
£m–Cashprices
CP5 commercial
income target
Outperformance
CP4 trajectory
CP5 plan
10%average year-on-year growth in
operating profit to be generated
over CP5
6.1%average like-for-like retail sales
growth during 2014/15
£203mnet property sales over CP5
£345mper annum average income
forecast over CP5
3Network Rail Property Delivering for our customersMaking unique places extraordinary
6. Moving forward
Network Rail has set a tremendous
programme of investment in rail and there
is plenty of space for Property to contribute.
We know that to remain successful we
can’t stand still. We are focused on driving
value through continuous improvement,
capturing the collateral value that the
wider rail investment programme will
generate and to deliver excellent asset
management.
Network Rail is the long-term owner of
stations and takes a long-term view of
their development. We will continue to
master plan our station developments to
ensure our stations heritage is protected
and enhanced and that they meet the
needs of commuters, not just now, but
long into the future.
Operating a safe business is essential,
not just in our day to day operation
of the estate but through our approach
to planning, by designing out risk, and
working with our route and train operator
colleagues to make the railway and our
people safer. We are leaders, proactively
identifying opportunities and pursuing
them to a successful conclusion. By
working in partnership with our customers,
the industry and Property colleagues,
we will help deliver a better railway
for a better Britain; making unique
places extraordinary.
David Biggs
Managing Director, Property
March 2015
Managing Director’s review continued
3.91internal customer service score
out of 5
3.76external customer service score
out of 5
£17mopex savings per annum created
by consolidating our office estate
4 Network Rail Property Delivering for our customers Making unique places extraordinary
7. Winning awards
We are proud to be recognised by our peers and the
industry for our role in building a better railway for a
better Britain. Here’s a selection of the awards that
Network Rail Property has won over the last year.
2014 FAB Award for Best Railway
Station Food and Beverage Offer:
King’s Cross
2014 FAB Award for Best
Station Pub: The Parcel Yard
2014 UK Rail Congress – Large
Rail Station of the Year Award:
Glasgow Central
2014 European Rail Congress –
Large Rail Station of the Year
Award: Glasgow Central
2014 WhatHouse? Gold Award
Best Partnership Scheme – Solum
Regeneration:
Walthamstow Central
2014 International
Communications Institute: Best
news-led magazine ‘Insight’
2014 British Parking Awards:
Best surface car park
(Chippenham)
2014 Out of Home Digital Awards:
Best original digital billboard –
Waterloo digital motion screen
We were also shortlisted for the
following accolades:
2014 BCSC (British Council of
Shopping Centres) Gold Awards:
Best refurbishment
(Over £5 million) – Victoria Place
2014 Planning Awards:
Best infrastructure planning
5Network Rail Property Delivering for our customersMaking unique places extraordinary
8. We want to be recognised by our
colleagues and peers as commercially
focused market leaders who are setting
industry standards, not following them.
Our customers should consider us to be
results driven, confident, reliable partners
with whom it’s easy to do business.
What does success look like?
—— Our activities generate outstanding
value for Network Rail, and enhance
the company’s reputation among
passengers, taxpayers and industry
stakeholders;
—— Our people feel proud to work for a
company with a strong reputation, and
carry out their roles in an environment
which enables them to develop to their
full potential;
—— Our customers enjoy a cost-effective
service that meets their needs; and
—— Our community partners benefit from
great places adjacent to and around
the rail network.
Our strategic framework
We are aiming for recognition as a leading specialist
transport property organisation – a rail estate
landowner and developer, and a service provider to the
transport industry both nationally and internationally.
Our vision
What we want to be
To be the property partner of choice
in the world of transport, respected for
our industry expertise and for creating
value through our people, assets and
great service delivery.
Our strategy
How we’re going to do it
To work collaboratively and offer
flexible, responsive and innovative
ways of doing business while putting
great customer service at the heart
of everything we do.
‘Partner of choice’ means being the first port of call for those
looking to drive commercial value from their land and property
assets. ‘Respected for our industry expertise’ means proving
that we can manage and grow these assets better than anyone
else. This will require us to become an effective, commercially
focused ‘property development and management company’
that attracts the best talent.
To do this we need to invest in our people, empower them
to make informed decisions, and create opportunities for
everyone in Property to learn and grow. Central to this is
excellent asset management.
By setting standards for how we manage our assets
and serve our customers, and continuously striving
to improve how we work, we will accelerate the release
of value from our estate and help to deliver a better
railway for a better Britain.
£668mExpected retail income to be
generated over CP5
6 Network Rail Property Delivering for our customers Making unique places extraordinary
9. Our purpose
Why we exist
To maximise net revenue from Network
Rail’s land and property portfolio in
order to sustainably fund, protect
and support investment in the railway.
Our behaviours
How we need to work
We will only be successful if we
are customer driven, accountable,
collaborative and prepared
to challenge.
All of the funds generated from our commercial activities are
reinvested into the railway to make it safer and more efficient.
Over the five year period ending in March 2014, Property
generated circa £1.4 billion – that’s enough to pay for the
complete redevelopment of Birmingham New Street and King’s
Cross stations. As one of Network Rail’s strategic business units,
we have a great responsibility to support the company in
achieving its plans for the future.
Customer driven means understanding the needs of our
commercial stakeholders and customers, delivering what we
promise and creating trusted relationships that are valued by all.
Accountable means taking responsibility for our own knowledge
and actions, and being straightforward and transparent in all of
our dealings; telling it like it is, being truthful and never over-selling
or misrepresenting our business.
Collaborative means working openly with others to achieve
individual and shared goals, being flexible and easy to do
business with.
Challenging means having the courage to defend our position,
when necessary challenge the status quo, and support individual
or collective risk-taking in pursuit of business ambitions.
Our role
What we do
We provide high quality professional
property expertise that reduces
industry costs, improves the passenger
experience, and creates great places
for people, businesses and communities
to thrive.
Through our six functional areas, we create attractive and
welcoming station environments where people enjoy spending
their time; provide highly profitable space to retailers and small
businesses; drive the sustainable regeneration of railway land
and its environment; deliver property solutions and services that
meet rail industry needs; and enable safe, stimulating, good
value working environments for Network Rail employees.
7Network Rail Property Delivering for our customersMaking unique places extraordinary
10. Commercial Estate – Making
unique places extraordinary
We want to help businesses grow and power the
regeneration of inner city areas through investment and
enhancement, and drive value from our assets by developing
tenant communities with a strong sense of purpose.
As the largest small business landlord in
the UK, Commercial Estate is an engine
for economic growth. By transforming our
arch space and light industrial property
into high quality places to do business, we
also play an important role in protecting
the railway for the benefit of passengers
and neighbours.
There is a considerable amount of
untapped revenue potential within the
Commercial Estate portfolio which we
intend to develop, becoming more than
just asset managers.
Investing for growth
In 2014, we completed a number of arch
transformations from poor quality industrial
uses to high value commercial and retail
premises. In Gateshead, we have completed
a row of eight arches which have created a
retail pitch which helps regenerate a route
from the river to the town centre. In Bethnal
Green, we have created a leisure hub of
quality independent restaurants and bars
which has generated a 300 per cent uplift in
rental income.
We liaise closely with neighbouring
developers to ensure we are able to
upgrade our arches with tenant mixes
that adequately serve the local
communities. We are working with the
Peabody Trust in Elephant & Castle to
refurbish 15 arches which will open up
onto their new development. We continue
to work closely with Grosvenor and
Workspace to design a fantastic scheme
consisting of over 30 arches which will
complement their residential and
commercial developments.
These are small but important steps in
what is set to be a steady transformation
of our estate.
An ever improving estate
Over the next three years, our aim is to
build our reputation as a provider of high
quality arch space which our stakeholders
love and which we are proud to let.
We have made good progress in this area
by firstly, implementing a rigorous regime
of asset management excellence which
sets high standards for both the condition
and management of our properties.
Secondly, we have introduced a new
Customer Relationship Management
system that enables us to better track our
customer communications, deal with close-
down queries more quickly and improve
our customer satisfaction scores.
In the past 12 months, we have introduced
detailed portfolio plans which cover all of
our estates nationally. These plans highlight
the work needed to get some of our older
estates up to our new standards, as well as
identify future development opportunities
by identifying areas of future growth and
investment. This process has been so
successful that within the first six months
of this control period, we have already
identified over half of our investment
income targets for the next five years.
2014/15
5,200
Commercial properties let
across Britain
Analysis of space by type (%)
2
15
22
61
Arches
Buildings
Land
Other
13yearsaverage tenancy
16msqftof lettable commercial space,
with an average property size
of 1,500 square feet
8 Network Rail Property Delivering for our customers Making unique places extraordinary
11. Our success stories
Driving local economies
Our extensive portfolio of railway arches in key city centre locations means we are
in a unique position to support small businesses and drive regeneration of inner city
areas through investment and enhancement.
Commercial Estate will play an active role in the £10 billion regeneration of the
Vauxhall Nine Elms Battersea neighbourhood in London. We’re working in
partnership with land owners to create access routes through two of our arches
to promote connectivity between key development areas, and exploring
redevelopment opportunities within our own land holdings to bring our 75 arches
in the area into higher value use.
We are actively working with local stakeholders such as Better Bankside and the
Borough Market Environs Group to plan and deliver a new ‘Low Line’ running from
Southwark tube station to London Bridge which we expect to complete before the end
of the decade. This will enable a walkway along a newly enlivened viaduct which will
include new shops, restaurants, offices and workshops.
Acting safely and sustainably
This year Commercial Estate has developed two new plans to improve the safety of our
workforce, tenants and communities and to deliver high levels of sustainability to our
assets over the next control period.
We are committed to promoting and delivering our ambition for everyone home safe
every day. We have implemented a programme of IOSH training for all our staff and have
devised a new inspections regime that will enable us to ensure our properties are safe.
These activities are designed to ensure safety is engrained in everything we do.
By the end of the control period, we will have completed a number of initiatives to make
sustainability a core principle of our Asset Management Excellence regime. This will
include among other things, encouraging bio-diversity in our estate, creating plans so
that we don’t send any of our own waste to landfill and encouraging our tenants to act
as sustainably as possible.
Supporting UK businesses
We see our arch spaces as unique and special. As such, we believe they demand the sort
of unique and special treatment that local independent businesses bring to them. This is
not to say there isn’t a place for big brands in our estate. However, more often than not it
is the small independent operators who bring most creativity to our spaces and help us
create the kinds of special places we envisage.
We are very proud of our involvement with the charity Meanwhile Space. This year we
have agreed to allow them to manage a number of units in our Loughborough Junction
estates which will provide space for start-up local entrepreneurs at affordable and flexible
rents. This will allow budding businesses to experiment and take risks with new concepts,
which we hope will thrive and become fully fledged customers in the future.
9Network Rail Property Delivering for our customersMaking unique places extraordinary
12. Development – Regenerating
land to make unique places
Our strategy is to use operational land to create development
sites, and through partnering with developers, help
regenerate our stations and surrounding areas, releasing
capital to fund the railway.
We want to regenerate major station hubs
across the country, creating spaces for
investment, work and life. Our future is to
partner, create and innovate, adopting a
range of approaches to work in partnership
with councils, developers and landowners
maximising value from our portfolio.
Retaining an involvement in the project
allows us to have greater control over the
delivery of viable schemes and the release
of value, as well as achieving improvements
in stations and other railway assets for the
benefit of the travelling public and other
industry partners.
The Development team also delivers
enhancement schemes within managed
stations, such as the Waterloo balcony,
the ongoing Euston station balcony and
the refurbishment of Victoria Place
Shopping Centre above Victoria station.
In addition, the team delivers projects to
improve our arch portfolio and attract
higher quality tenants within a much
improved facility and local environment.
Partnering with the private
sector
Adopting a collaborative way of working
that prioritises joint ventures, direct
development and greater scheme
investment over straightforward land
disposals is a cornerstone of our
growth strategy.
We are working with Lambeth Council
to look at improvements to the centre
of Brixton and the regeneration of
Loughborough Junction. In addition, we
are working closely with Lambeth on our
master plan for Waterloo station and the
surrounding area.
In Scotland, we are working in partnership
at Glasgow Queen Street to transform the
station that is the western terminus for
the main Edinburgh route. We are also
helping to extend the adjoining Buchanan
Galleries, which is the biggest shopping
centre in Scotland.
Place making
Solum Regeneration, our joint venture
vehicle with Kier Property, provides station
and environmental improvements to the
travelling public through mixed-use
development in London and the South
East. This year, the partnership is working
on a number of sites stretching from
Exeter to Guildford to Haywards Heath to
Walthamstow to deliver successful
mixed-use schemes beside or on railway
land. The Network Rail stations benefit
from improvements included as part of
the initial appraisal.
Other high profile development and
railway enhancement schemes currently
in our pipeline include retail and
passenger improvements at Paddington,
Charing Cross, Liverpool Street, Leeds and
Edinburgh.
250sites in our development
pipeline
20master plans completed
or underway
2,845 additional car parking
spaces created at railway stations
across the country since June 2013
30,000potential residential units to be
created through Network Rail
property transactions by 2020
10 Network Rail Property Delivering for our customers Making unique places extraordinary
13. Our success stories
Creative ideas make unique places
Bishopsgate Goods Yard is a major development site in Shoreditch, but while
the planning process takes place we’ve created opportunities for pop-up shops
to do business. We’ve also built temporary five-a-side football pitches in
conjunction with Power League; maximising otherwise unused land has
enriched the local community and small businesses, as well as reducing
security costs and trespass risk.
Revitalising under-used land
At Wyvil Road, Vauxhall, London, we’re teaming up with K2 Properties and NRIL, as
well as working with Lambeth Council, to develop a site which is part of a huge new
regeneration area, including more than 20 new tower blocks.
Planning permission has been granted for a 37 storey building, comprising over
200 flats, some of which will be designated as affordable housing and 25,000 sq ft
of retail.
We’re involved in developing new units and commercial space with a gross
redevelopment value of £220 million.
More space for passengers
Passengers at Euston can look forward to a bigger, better station with more shops
and a wider choice of food and drink through the £12.5 million Euston Balcony
Development Scheme, currently under construction.
More than 70 million people use Euston station every year and passenger numbers
are growing faster than any other London terminus. Network Rail’s scheme will
create more space both inside and outside the station while giving passengers, local
residents and people working in the area a better selection of shops, as well as places
to eat and drink.
11Network Rail Property Delivering for our customersMaking unique places extraordinary
14. Planning and Land Services
– Planning for growth
Railway investment leaves a lasting legacy for the British
public. It affects how people move across the country, what
homes, businesses and offices are built and where, and
enables the delivery of sustainable regeneration objectives
from our partners and stakeholders.
Any plans to change or improve our
infrastructure require consent and support
from local authorities, heritage bodies and
others who have a shared interest in the
development of the railway.
The support that Planning and Land
Services provides to Network Rail and
train operating companies is critical for
the smooth implementation of railway
investment schemes. Our in depth
knowledge of the railway, combined with
unrivalled expertise in town planning and
geomatics, has been instrumental in
delivering the consents required for a wide
range of projects in a timely manner.
Master planning and
place-making
We understand and support the role of
stations in the wider community and we
recognise the importance stations hold for
our neighbours and stakeholders. Our
team plays a substantial role in station
development through active engagement
in the development of station master
plans and also the promotion of local
authority development plans.
We are supporting Network Rail in the
development of station master plans
throughout the UK ensuring that the needs
and expectations of local communities form
key components in the plan’s development.
Preserving our heritage
As one of Britain’s largest landowners of
statutorily protected structures, we have
a duty of care to protect, preserve and
enhance Network Rail’s extensive estate
of such listed assets. The best use of such
buildings is in the use to which they were
first built, and the enhancement of the
railway estate provides many
opportunities to secure their future.
New ways of managing our heritage
estate are being explored, with a Heritage
Partnership Agreement being prepared as
a pilot approach to the ongoing
maintenance of the Grade II listed
Castlefield Viaduct which dissects
Manchester city centre.
Safety and sustainability
Planning and Land Services has
established the Property Safety Steering
Group, and has agreed an improvement
plan with actions to be delivered across
this control period. An important step in
this plans development has been
improving our understanding of the safety
issues in Property, and empowering our
colleagues to challenge anything that has
the potential to cause harm to
themselves, our working colleagues or the
travelling public.
We also produced an Integrated
Sustainability Improvement Plan to
underpin our contributions towards
Network Rail’s vision for Sustainable
Development. This plan describes where
Property will deliver a difference through
our activities to achieve this vision, and
it establishes a framework to guide us
towards putting sustainability at the heart
of how we do business.
49major projects supported
across the network
841consents achieved for operational
and listed building schemes
3,431third-party planning applications
responded to
56,000+plan, survey and data
management instructions were
completed by the team
12 Network Rail Property Delivering for our customers Making unique places extraordinary
15. Our success stories
Capacity improvements
A core part of the team’s work is the development of route capacity
improvements through the provision of new track, either through redoubling
of single lines on the network, in new chords and structures, or in some
locations through entirely new lines.
In Scotland, the team are delivering all the planning consents and title
investigations for the construction of the new Borders railway. In Wales, we
secured planning permission to undertake detailed surveys for the extension
of the Ebbw Vale railway line by 2km together with the construction of a brand
new station. While in the North West, consent has been secured for an
additional track on the Liverpool to Manchester route and an extra platform at
Manchester airport station, as part of the ongoing Northern Hub programme.
Electrification
Work continues on projects to electrify key rail routes across the country – Great
Western, Midland Main Line, North West Lancashire and the Trans-Pennine route via
Standedge Tunnel.
For each route, a series of consents have been obtained to allow clearance works
on bridges to progress, a number of these bridges are listed structures which require
lengthy negotiations with English Heritage.
In Scotland, progress on the Edinburgh Glasgow Improvement Programme continues
to be facilitated by the team securing planning, listed building and scheduled
monument consents for this comprehensive package of works, which includes
modernisation and upgrades to key junctions and infrastructure, as well as
widespread electrification of the Scottish rail network.
Supporting a safer railway
This year, we continue our success in securing planning consents for the closure of
level crossings on the network and we have also started exploring ways to use the
planning process to further support Network Rail’s level crossing safety programme.
Network Rail are renewing our focus on level crossings, implementing a
comprehensive national level crossing safety improvement programme to manage
risks, and improve safety, and we’re also approaching level crossings in a new way, as
a single system.
13Network Rail Property Delivering for our customersMaking unique places extraordinary
16. Property Services – Delivering
successful property solutions
We partner with our colleagues in the routes and provide a vital
link between our team and Network Operations. Our Property
Services managers are leading the development of land strategy
across the company helping to find innovative solutions to
complex land problems.
We provide property expertise within the
rail environment, through our deep
understanding of our clients’ business
objectives, to generate opportunities that
enhance the safety, performance and
value of the railway.
Property Services supports a growing rail
network by:
—— Developing land and property strategy
to optimise use of the estate;
—— Delivering all land and property
acquisitions required to support
operations and projects;
—— Growing revenue from the freight and
telecoms related property portfolios,
and also commercial easements;
—— Selling surplus land, no longer required
operationally or commercially; and
—— Providing a link to all the other
specialist skills held across Property.
National coverage, local solutions
The team continues to deliver services for
significant enhancement, renewals and
maintenance programmes across Britain
ranging from projects such as Thameslink
and Crossrail, through to the electrification
and level crossing closure programmes.
We continue to work closely at a local
level on important new rail performance
initiatives such as weather resilience
programmes, using our detailed
understanding of land and property
rights to support the routes in obtaining
the land required.
The team is also pursuing ambitious growth
in commercial revenue from freight and
telecoms, by working closely with
operational colleagues and industry
stakeholders, as demonstrated by the
50 per cent growth in revenue over the past
three years from commercial easements.
Strong working relationships
– creating new value
Greater understanding of our clients,
external and internal, and delivering to
their needs has helped put our customer
service and advocacy ratings in the top
quartile for the third year in a row. We’re
proud of our reputation and we are always
striving to do better.
The Property Services managers are now
firmly linked to routes across the country
bringing our expertise closer to the heart
of route leadership and enabling Property
to play a more proactive role in route
management and planning.
Supported by a flexible pool of surveyors,
each Property Services manager is
creating longer-term land use plans to
help improve operational performance
and minimise operational costs, while
also identifying and delivering commercial
opportunities to grow income.
2,000+property transactions delivered in
support of rail projects and route
works programmes
3,500properties in the freight, telecoms
and energy portfolios across
Britain now managed to meet
growing demands in these
sectors, together with 30,000
utility wayleaves
100%revenue growth; CP5 will see
revenue receipts double the
amount generated in CP4
14 Network Rail Property Delivering for our customers Making unique places extraordinary
17. Our success stories
Acquiring land to create opportunities
We have acquired an 80 acre site in Millerhill, Edinburgh part of which is
needed for the delivery of the Borders railway project. Some of the surplus land
will then be allocated for a water treatment facility, while the remaining 30
acres will have potential for future residential and commercial development.
The adjoining new Shawfair station will be opened in 2015 providing a 15
minute commute to the heart of Edinburgh.
As part of the overall land strategy for the area, an additional 68 acre site has
been acquired for a new Light Maintenance Depot for stabling and servicing of
the electric traction rolling stock to run on as part of the Edinburgh to Glasgow
Investment Project.
Supporting critical safety initiatives
Acquisition of property on the high street in Lincoln was recently completed to allow
for the development of a new footbridge, reducing pedestrian footfall over what had
become the worst level crossing for instances of misuse on the route. Negotiations
were concluded successfully within budget to deliver full possession of the property
enabling works to commence on time.
The team worked with the route to enhance planning permission for the scheme
providing scope for new development of ground floor retail and options for the upper
floors and wider extensions for either a university faculty building, student housing or
a hotel. As a result, a critical safety enhancement will now be delivered part-funded
from the property opportunity, and in addition a new commercial development will
be created generating additional commercial revenue.
Growing revenue, creating new rail facilities
We generate valuable income by providing external companies with use of our land
and property to deliver products and services in the freight, telecoms and energy
sectors. By developing land strategies, creating opportunities and working very
closely with our customers, the teams are progressing plans which will double the
property revenue from these portfolios during CP5.
15Network Rail Property Delivering for our customersMaking unique places extraordinary
18. More than one billion passengers
are expected to pass through our
stations each year by 2020
510,000sqftof trading space is managed by
the retail team. This will rise to
850,000 sq ft by 2019
480 retail and catering units
representing 140 different brands
2,200roadside and 2,000+ rail
advertising sites in our portfolio
£150mto be spent on improving
our stations over CP5
Retail –
Creating destination stations
Over 800 million passengers pass through Network Rail
managed stations every year. Our future is to capitalise on
the scale of this footfall by working in partnership with our
retailers to create extraordinary places for people to meet,
eat, shop and travel.
Destination stations
Our vision is for all Network Rail managed
stations and retail assets to be recognised
as destinations in their own right – first-
class travel facilities which simplify the
lives of the busy passenger and are a
convenient environment for retail, leisure
and business in the communities where
they are situated.
Stations of the future
Over CP5, we will double our investment
in the transformation of our estate,
designing stations of the future which
delight our customers and push the
boundaries of commercial opportunity
further than ever before.
We will also continue to embed our safety
culture, ensuring our environments are
managed effectively and our retailers
know and understand our lifesaving rules.
We want all Network Rail stations to
be known as: first class operations, high
quality environments, convenience hubs,
commercial touch points and strategic
assets for the local community.
Our strategy seeks to position our stations
as central touch points in people’s lives by
prioritising our efforts in five key areas:
1. Asset management excellence
2. Investing for growth
3. Customer focus
4. Embracing technology
5. Maintaining a high-performing team
During CP5, we will invest £150 million
to lead the transformation of more
stations into safe, modern and welcoming
environments where people want to
spend time.
Understanding station users
Retailing has evolved over the decades and
has reached a phase in which consumers
use multiple channels and formats,
combining research with physical shopping
or collecting across multiple locations.
We commission regular consumer insight
about station users and their behaviours,
particularly in regards to their current
usage patterns and future preferences for
station retail and services.
We’re pursuing innovative ways to
generate even more value for passengers,
while opening up new income streams for
increased investment in the rail network.
16 Network Rail Property Delivering for our customers Making unique places extraordinary
19. Our success stories
A bigger better and brighter station for Birmingham
Network Rail is transforming Birmingham New Street station into a stunning
transport hub for the West Midlands and, combined with the redevelopment of
Grand Central shopping centre, which sits above the station, the area will be a
world class transport, shopping and community hub in the heart of the city.
16,000 square feet of new retail space will be created through the
development providing an amazing opportunity to bring our vision for station
retail to one of the country’s fastest growing cities.
When the project is completed in 2015, the station will be enclosed by a giant
atrium, allowing natural light throughout the station and to all 12 platforms.
The new concourse will be three and a half times bigger providing more space
for the 140,000 passengers who use the station every day.
Safe, secure station parking
A rolling programme of car park development created in consultation with the routes
is bringing additional convenience to railway stations across the country. During this
control period, we will spend circa £15 million on new car parks to meet the needs of
key demand areas around the network.
All Network Rail car parks are certified as Park Mark compliant, meaning that they
have been validated by the police as being among the safest in Britain. Additionally,
we have begun to promote Network Rail’s level crossing campaign See Track, Think
Train on the back of all car parking tickets in order to get this important railway
safety message out to our customers.
A business hub in the heart of a transport hub
We understand mobile workers passing through our stations crave space to get their
work done. Our joint venture with The Office Group is unlocking value in poorly
utilised space on managed stations while opening up opportunities for Britain’s
mobile workforce.
The Station Office Network now provides offices, meeting rooms and shared space,
as well as wi-fi and other business essentials at Paddington, King’s Cross, Leeds and
Liverpool Street stations, with ambitious plans to open more flexible work spaces
across our network. And with some locations already reporting over 90 per cent
occupancy, the innovation seems set to flourish in the years ahead.
We expect further collaboration with our partners in the future as we challenge
ourselves to create and manage more class-leading station environments.
17Network Rail Property Delivering for our customersMaking unique places extraordinary
20. 4.5msqft+of space – a mixed portfolio
of buildings
1,046locations where we deliver
services via national contracts
1,850 colleagues relocated
in CP5 so far
average number of delegates
who have visited Westwood per
annum since it opened in 2005
50,000
Workplace Management –
Delivering great workplaces
for our people
Workplace Management aims to support everyone at
Network Rail with workplace and training facilities to enable
them to have their best day at work every day.
By working collaboratively with the routes,
Infrastructure Projects, Information
Management, HR and Contracts
Procurement, we deliver cost effective and
sustainable strategies and services, providing
safe places that are fit for purpose and
enable people to meet their full potential.
Fit for purpose
When the doors opened on The
Quadrant:MK, Network Rail’s new national
centre in Milton Keynes, mid-summer
2012, we realised a transformation in the
standards of our office accommodation
launching at the same time as a cultural
change towards new agile work styles.
The Quadrant:MK is an exemplary
regional corporate office environment and
marks the beginning of a journey to bring
all of our workplace accommodation up to
a fit for purpose standard. While the end
result may vary by location and function,
the basic principles are the same –
efficient, effective, engaging spaces for
people to achieve their best.
Value for money
We have committed to reducing the cost
of workplace accommodation by 22 per
cent by the end of CP5. Therefore, while
we improve the quality of space we
provide, we must ensure that every square
foot is being used efficiently.
Applying the principles of agile working is
one way we plan to achieve this and the
business has embarked on a significant
cultural change programme to embed
new ways of working. In the physical
environment this will introduce a better
mix of work settings in more of our office
locations, improve effectiveness and
optimise use of space, which is the biggest
factor in reducing our property costs and
our environmental impact.
We also need to encourage our customers
to value the space that they use by being
transparent about how much things cost
and demonstrating the positive impact of
good workplace management with
reliable data and information.
Striving for sustainability
Embedding robust sustainability targets into
our full range of activity is a vital part of our
workplace programme. We are undertaking
a series of benchmarking activities to
support the creation of business cases, which
will ensure that our targets are meaningful
and aligned to Network Rail’s objectives.
The Quadrant:MK and the new Anglia route
offices at Stratford are both rated as
BREEAM Excellent buildings which puts
Network Rail in a respected class of
organisations achieving best practice in
building design, construction and operation.
We are also working closely with our
supply chain partners in the area of
sustainability and together have received
industry recognition for our results in
waste management.
18 Network Rail Property Delivering for our customers Making unique places extraordinary
21. Our success stories
Sustainable facilities for our team
Our fit-out of Network Rail’s Cotton Centre building has received a SKA Gold
rating in recognition of its excellent sustainability measures.
Recently featured in the UK Government’s Low Carbon Action Plan, SKA rating
is an environmental assessment method, benchmark and standard for
non-domestic fit-outs. SKA ratings help landlords and tenants assess fit-out
projects against a set of sustainability good practice criteria. It is estimated
that 11 per cent of UK construction spending is on fit-outs and that buildings
may have 30 to 40 fit-outs during their lifecycle.
The offices scheme consists of more than a hundred ‘good practice’ measures
covering energy and CO2
emissions, waste, water, materials, pollution,
wellbeing and transport. Wi-fi has also been fitted across all areas, allowing
users to touch down anywhere.
Quality environments boosting productivity
The Quadrant:MK and Westwood serve as reference points and these have been joined
by other newly fitted floor space occupied by Network Rail at London Bridge Cotton
Centre, One Stratford Place, Glasgow George House and St Vincent Street among
others – all providing great places for our people to network and be more collaborative.
Recent survey results show that people feel more productive in these spaces. These facts
support our philosophy that a fit for purpose work environment can create engagement
that positively influences how people work and how the business performs.
Supporting new ways of working in the routes
Workplace Management is part of a cross functional team that is working together
to design, build and service the new Route Operating Centres which will consolidate
all signalling and control activity in order to improve performance.
Using our expertise in the whole-life issues of running buildings and our people-
centred approach to maximising performance, we are leading the design of each
building’s fit-out as well as the operational strategy for how they will be managed for
the long term.
We’re providing similar support at Network Rail’s Maintenance Delivery Units by
developing strategic accommodation plans that enable the routes to relocate and
consolidate maintenance activities into fit for purpose facilities in the right locations.
19Network Rail Property Delivering for our customersMaking unique places extraordinary
22. Propertyobjectives
for 2015/2016
Our vision is to be the property partner of choice in the world of
transport, respected for our industry expertise and for creating
value through our people, assets and service delivery. To achieve
this we will work collaboratively and offer flexible, responsive
and innovative ways of doing business. We will also place
customer service at the heart of everything we do. In 2015/16,
our success will be measured on the basis of achieving the
following outcomes:
Financial
—— Exceed operating profit target (excluding WPM) of £267m.
—— Exceed net property sales target of £50m.
—— Achieve a better workplace management opex target.
—— Achieve or better a corporate estate agile working ration
of 0.9/1.
—— Manage acquisitions and enhancements spend in 2015/16
to achieve our strategic growth agenda.
—— Deliver budgeted in-year enhancements.
—— Plan and allocate in-year enhancement income for 2016/17
and identify enhancements for 2017/18.
Process
—— Achieve the set down milestones of the ‘modernise property
programme’ including introduction of a CRM system and
achievement of key project milestones on the V10 upgrade.
—— Achieve the set down key milestones on the top 20
developments.
—— Achieve our sustainability standards/charter.
—— Deliver the Property safety improvement plan to agreed
milestones.
—— Achieve set down asset management standards, including
inspections, applying a risk based approach – assessed
against an agreed programme.
Customer
—— Deliver fit for purpose environments for our colleagues and
customers in accordance with the standards outlined in our
property asset plans.
—— Improve our customer service scores year-on-year by
responding to feedback and embedding the principles of our
stakeholder promise.
—— Build awareness with the people who matter to us, so they
better understand: who we are; what we do and the value we
bring. We will do this by establishing three – four relevant PR
themes and improving our priority communication
channels. This will lead to:
–– At least one feature article per quarter and one piece of
responsive media coverage per period.
–– A more relevant and user-friendly web presence, which
achieves at least 25 per cent improvement in our web
traffic (across both volume and bounce rates).
–– Being short listed for at least six relevant industry awards.
Learning and growth
—— Deliver the Property people programme focused on enabling
us to be better every day, underpinned by Network Rail core
values to deliver, plan and create an environment where
everyone can develop to their full potential.
—— Deliver the Diversity Inclusion plan to programme including
the Wellbeing programme.
20 Network Rail Property Delivering for our customers Making unique places extraordinary
24. Safetyandperformance
Network Rail is committed to safety and Network Rail
Property will continue to redefine its standards for safety
through planning, service and teamwork. In pursuit of this
vision, we will champion values of quality of the highest
calibre, service beyond the expected, and teamwork with
individuals working together towards a common goal.
Network Rail safety vision
Everyone home safe every day.
As a responsible business, we safeguard
and support all of our people to be safe
and well every day.
We follow the Network Rail policy for
Health and Safety:
‘Safety isn’t about statistics. It isn’t
separate from our business. It’s central to
everything we do, and we absolutely do not
compromise on it. Even one accident is one
too many. So, if it isn’t safe, don’t do it.’
Living the Lifesaving Rules
Network Rail’s Lifesaving Rules are at the
heart of our safety vision – everyone
home safe every day – and the result of
our ongoing commitment to eliminate all
injuries and fatalities in Network Rail and
our industry.
As Network Rail employees we all have
a responsibility to comply with the
Lifesaving Rules and to personally
intervene if we feel others may be
working unsafely as a priority.
Safety in Property
Our Property Safety Improvement Plan
(PSIP) describes a cross-functional and
systematic safety performance
improvement framework, developed
within Property to improve our safety
culture, and to eliminate or reduce the
risks associated with Property works.
This plan steps out key Property safety
initiatives throughout CP5 and outlines a
set of commitments that will guide our
safety progress moving forward.
Commitments
Our commitments reflect the strategic
direction for safety within Network Rail:
Leadership
—— We will hold each other accountable
for safety.
Culture
—— We will have the courage to challenge
each other on safety.
—— We will report all unsafe activities.
Assets
—— We will put safety at the centre of
designing, managing and maintaining
our equipment and assets.
—— We will look for new ways of making
the railway safer.
—— We will report all unsafe assets and
equipment.
Risk
—— We will remove or reduce risks
wherever possible.
—— We will work with our industry
colleagues to tackle the risks we share.
Rules
—— We will always follow the Lifesaving Rules.
—— We will have clear and practical
standards and processes.
Skills and equipment
—— We will have the necessary skills and
training to work safely.
—— We will use the correct tools,
equipment and facilities for each job.
Communication
—— We will encourage open and honest
conversations on safety.
—— We will listen and act on any
suggestions to improve safety.
Wellbeing
—— We will support colleagues to improve
their health and wellbeing.
Safe behaviour is a requirement of working for Network Rail.
These Rules are in place to keep us safe and must never be broken.
We will all personally intervene if we feel a situation or behaviour might be unsafe.
Our Lifesaving Rules
For more information about our
Lifesaving Rules go to safety.networkrail.co.uk/LSR
July 2014
We will always comply with our Lifesaving Rules
Always be sure the required plans
and permits are in place, before you
start a job or go on or near the line.
Always test before applying earths
or straps.
Never undertake any job unless you have
been trained and assessed as competent.
Always use equipment that is fit for its
intended purpose.
Never work or drive while under the
influence of drugs or alcohol.
Never assume equipment is isolated –
always test before touch.
Never enter the agreed exclusion zone,
unless directed to by the person in charge.
Working responsibly
Working with electricity
Driving
Working at height
Working with moving equipment
Never use a hand-held or hands-free phone, or
programme any other mobile device, while driving.
Always obey the speed limit and wear
a seat belt.
Always use a safety harness when working at
height, unless other protection is in place.
A3_NR_LSR_Poster_01.indd 1 01/08/2014 14:42
22 Network Rail Property Delivering for our customers Making unique places extraordinary
25. Abetterrailwayfor
abetterBritain
A selection of the projects that Network Rail Property
has delivered, or will be actively involved in delivering,
over the coming years across the UK.
Borders railway
Land strategy and other
professional property
support to help deliver
30 miles of new railway
and seven new stations
in the Scottish Borders.
Hexham
Station improvements and
a modern retail facility at
the former goods yard.
Westwood (Coventry)
Increased capacity and
efficiency at Network Rail’s
flagship training centre.
Leeds
Investment scheme that
will bring six stories of
redundant office space at
One Aire Street back into
beneficial use.
Electrification
Property, planning
and heritage consents
together with acquisition
of land interests.
Birmingham New Street
New shopping and dining
facilities anchored by the
largest John Lewis store
outside of London.
Wales
New platforms and entrance
buildings at Cardiff Central
and Queen Street stations
and improvements at other
Valley Line stations as
part of the Cardiff Area
Signalling Renewal.
Basingstoke
A new Workforce
Development Centre and
Route Operating Centre
for Wessex.
Crossrail
Property, planning and
heritage consents together
with acquisition of land
interests.
Thameslink
Property, planning and
heritage consents together
with acquisition of land
interests.
01 Bermondsey
An investment scheme that
will bring circa 60 arches
into use in conjunction
with a major third-party
redevelopment of the
Bermondsey Biscuit Factory.
03 London Bridge
Investment in our
surrounding arch properties
to support the regeneration
of the station and local area.
04 Vauxhall
A major regeneration
programme that will bring
circa 75 arches into higher
value use and help to
rejuvenate the area.
05 West Hampstead
Station improvements and
new affordable housing
adjacent to the railway.
02 Euston
More concourse space and
an improved passenger
experience at the station.
04
05 02
03
01
23Network Rail Property Delivering for our customersMaking unique places extraordinary
26. Agrowingnetworkofstations
York and Newcastle
Network Rail will this year bring two
additional stations into our portfolio,
Newcastle and York. Both represent
significant opportunities for our business.
The two stations are currently under
operation by East Coast until the new
Train Operating Company, Stagecoach/
Virgin, takes control during 2015. When
this occurs, the stations will be transferred
to the Network Rail Managed Station
portfolio and operated under a relatively
new model referred to as ‘Managed
Station Lite’. This model was adopted at
Reading and Bristol and is seen as a cost
effective and efficient hybrid model of
station operation. York and Newcastle will
form the next iteration of this with
Network Rail working in conjunction with
the train operator to effectively manage
both stations.
At last count, York and Newcastle have a
combined footfall of circa 16 million per
annum and Network Rail will be installing
its digital footfall counting system to
verify and analyse the exact flows in the
respective stations in all areas to assess
safety, understand customer behaviour
and measure commercial value of the
existing space.
Network Rail owns and
manages some of Britain’s
biggest and busiest stations
National stations
—— Birmingham New Street
—— Bristol Temple Meads
—— Edinburgh Waverley
—— Glasgow Central
—— Leeds
—— Liverpool Lime Street
—— Manchester Piccadilly
—— Reading
London stations
—— Cannon Street
—— Charing Cross
—— Euston
—— King’s Cross
—— London Bridge
—— Liverpool Street
—— Paddington
—— St Pancras International
—— Victoria
—— Waterloo
The two stations also offer significant
enhancement prospects both in the short
and longer term. The pedestrian
footbridges are in need of upgrade which
will address important compliance needs
and improve pedestrian flow. The local
transport links at both are being reviewed
in conjunction with local councils to
improve the overall connectivity
experience for passengers and, in the case
of York, to add a potential new entrance
to the station realising the relatively
untapped potential of the footfall to the
National Railway Museum and the
surrounding land.
In addition to enhancing the retail offer
within the stations through the experience
of our team, facilities such as car parking
can be assessed and optimised to increase
revenue and improve the operation of the
station. While York and Newcastle are
some of the smallest stations in our
portfolio, benefits of aligning these two
stations along with Edinburgh Waverley,
London King’s Cross and indeed Leeds City
station, will deliver a consistency of
approach and experience for the
passenger. The economies of scale of
taking on these stations, operating them
in this way and delivering enhancements
longer term make absolute sense and
align with our strategy of capturing value
from our assets to help fund the railway.
Above and left: York and Newcastle
stations will be a welcome addition
to our station portfolio.
24 Network Rail Property Delivering for our customers Making unique places extraordinary
