Railway arches sale failed to consider tenants, says NAO

Network Rail’s sale of 5,261 arches to Blackstone and Telereal in February may well have achieved a price some 50% in excess of the government’s retention value, but a National Audit Office report this week questioned whether the price achieved should outweigh the needs of tenants and communities.

Blackstone and Telereal paid just less than £1.5bn for the portfolio of railway arches, some £510m more than the conservative £950m value Network Rail had placed on the portfolio (if it were to be kept in public ownership).

Its pre-sale valuation was just less than £1.2bn and it was