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Wednesday 2 Apr 2008

NETWORK RAIL AND KIER ANNOUNCE MULTI-SITE DEVELOPMENT JOINT VENTURE

Region & Route:

National

Revamped stations and new facilities for passengers in London and the South East were signalled today as Network Rail selected a preferred development partner for its innovative multi-site joint venture.

Network Rail and Kier Property Limited (Kier) will work together in equal partnership to regenerate brownfield sites. The initial portfolio of sites are six stations at Enfield Town, Epsom, Guildford, Maidstone East, Twickenham and Walthamstow and a further site at Wembley Cutting and have a gross development value in excess of £500m. The partnership will be a catalyst for sustainable regeneration for these and potentially many more important town centre sites.

Mick Martin, Network Rail’s director, commercial property said: “This is a pioneering deal for Network Rail. By creating a true partnership with Kier, each of us having a 50% stake, we will maximise the value of the chosen sites, delivering significant passenger benefits and creating a sustainable income stream to improve the railway for years to come.

“By simplifying the development process and reducing the cost and time taken to deliver successful and profitable developments we can deliver real improvements to stations and facilities for communities. This is the first of many changes we will make to enhance value from our assets. Network Rail is open to business and willing to tap into development expertise to release commercial potential on our estate.”

Nigel Turner, Kier Property’s commercial director added: “We are absolutely delighted to be Network Rail’s chosen development partner for the first multi-site joint venture in the South East. The sites are all in core commercial and residential locations, where there is a real opportunity to create some stunning developments around existing transport hubs. This is a first-class regeneration opportunity.

“Kier see this joint venture as a long term partnership, where our development expertise can add value through simplification. Working together with other parts of the Kier Group including Kier Rail we will aim to bring wide ranging skills to the Network Rail estate to the benefit of the joint venture.”

Of the seven schemes identified at this stage, developments are likely to include residential, retail and office accommodation.

Network Rail is being advised by King Sturge. Kier’s advisers are DTZ.