Sell-off of Holloway Road arches fuels fears over rail sites rent
‘Livelihoods are under serious threat’ – businesses trading in Holloway Road reveal concerns
Friday, 28th September 2018 — By Emily Finch
Scott Tudge of CrossFit Evolving: ‘We do a lot for the local area’
Jeremy Corbyn backed business owners who have set up shop in the borough’s railway arches after Network Rail announced the completion of a £1.5billion sell- off of their buildings portfolio to a property management firm.
The Labour leader and Islington North MP wrote to bosses at Network Rail requesting a meeting because traders “now feel their livelihoods are under serious threat” following the sell-off this month.
Around six businesses trade out of the arches by Holloway Road tube station including an interior design firm, a boutique gym and a music recording studio.
Scott Tudge, 38, who owns CrossFit Evolving, said he was “concerned” about the sell-off which will now see property giants Telereal Trillium and Blackstone Property Partners become the landlords of 5,200 properties across the country. He said: “I assume and hope rent won’t increase but if it goes up by, let’s say 10 per cent, then we will leave. We’ve only got a three-month notice period too.” He added that he “never felt like” small businesses are supported by the government and the Town Hall, and added: “We do a lot for the local area. We have kids’ classes in here, we teach people with disabilities and take people from inactive to active.”
He said Network Rail- had already increased his rent by more than 50 per cent since he moved in seven years ago.
Other business owners including Constantin Boca, who runs Bok Construction, said they would have to move out of Lon- don if they saw their rent increased. “This is a massive worry. We rent two buildings from Network Rail. We’ve been here for a few years. We won’t be able to find space similar to this, we spent years finding this space, which is a perfect size for us,” he said.
Mr Corbyn sent an open letter to the chairman of Network Rail, Sir Peter Hendy, and chief executive, Andrew Haines, last week. He wrote: “I know from visiting traders in the Holloway Road arches how much pride they take in the services they pro- vide and how concerned they are about the future. Many were already feeling the strain of excessive rent increases and now feel their livelihoods are under serious threat.”
He called on transport chiefs to accept the demands laid out by the campaign group Guardians of the Arches, which calls for more secure tenancies and transparent rent audits among other demands.
Sir Peter reassured ten- ants in a statement released shortly after the sell-off announcement on September 10. He said: “This deal is great news – for tenants it will mean significant commitment and investment, and for passengers and taxpayers it will mean massive, essential improvements without an extra burden on the public purse.”
Graham Edwards, co-founder and chairman of Telereal, said: “With our permanent capital structures, we will be investing in the portfolio for many years. We believe that the long-term success of this portfolio rests on strong relationships with our ten- ants, as well as with local communities and local government.
“We intend to remain particularly sensitive to the small businesses that have been long-term ten- ants of the Network Rail estate, and look forward to a long-term partnership with Network Rail.”
