High Speed 2 Ltd (HS2 Ltd) is seeking to recoup more than £ 1 billion from the sale of On-Site Development (OSD) above its Euston terminus in order to reduce the cost of the project, New civil engineer can reveal.
Instead of paying the money into the treasury, HS2 Ltd suggested that the proceeds from the sale could be fed back into the Euston program.
Harnessing this money would also allow HS2 Ltd to reduce the cost of delivering the London terminal. Several former HS2 executives – including former chairman Sir Terry Morgan – have suggested reducing the cost of the project by removing the Euston terminus.
Selling plans for the site to developers are spelled out in an unedited version from HS2 President Allan’s Cook’s Inventory report New civil engineer understand. A redacted version of Inventory was released by the government in September.
A company spokesperson has now confirmed that HS2 Ltd expects to make “north of £ 1 billion” by selling the land above Euston station.
The redacted version of Inventory The report states that “HS2 has identified development opportunities with profit value across the route,” including a development portfolio comprising “on-site development opportunities at stations and depots (including including Euston) ”as well as retail advertising and parking lots.
The plans are part of a recalculation of the costs and benefits of the scheme as the estimated budget has increased from £ 56bn to £ 88bn (at 2019 prices).
HS2 Ltd’s plan to reset funding arrangements would involve renegotiation with the Ministry of Transport and the Treasury. It is understood that the £ 1bn from the sale of Euston’s OSD was previously due to go to the Treasury.
The redacted version of Inventory report adds, “It is important to recognize that HS2 creates great increases in value in the places it serves and in the assets it creates. Other funding and funding possibilities should be considered in addition to the ongoing cost and schedule activities.
“We must continue to explore opportunities with the private sector, local authorities, development agencies and other local stakeholders to help finance in return for future income. Along with maintaining cost pressure, HS2 Ltd, along with the government, is expected to take further steps to add value to its assets, especially around land and properties in city centers.
New civil engineer revealed last week that costs associated with developing the new HS2 terminus at Euston are expected to exceed £ 2bn, up from £ 1.5bn at the start of the year when budget contingencies are included.
The overhaul of the existing Network Rail station and surrounding area, which is planned by Lendlease, could also cost up to £ 2 billion more than originally thought, sources familiar with the project have said. . The developer has previously said the project will have a development value of around £ 5.8bn when completed, but official costs for the project have yet to be released.
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