Network Rail released new images last week of their Cannon Place development at London’s Cannon Street station. During challenging times for the commercial property sector Cannon Place bucks the trend and will be one of only two new office developments to open in the City of London in 2011.

Work continues in constructing an eight-storey, 400,000 sq ft office building above a new railway concourse and tube station entrance. The development will transform the station making it brighter, easier to use and more spacious and open than the old one. The building above is architecturally striking, bringing a presence to the site that heralds its significance as a centre for commerce.

Improvement to the station, which is amongst the top ten busiest in the country serving 95,000 City workers each day, is needed . The previous 12-storey tower had outgrown its usefulness and Network Rail and Hines (a privately owned real estate firm involved in real estate investment, development and property management worldwide) have used the opportunity to develop a cutting-edge new office complex which leverages private sector capital to fund a station revamp.

Patrick Butcher, group finance director, Network Rail said: “Millions of people use our stations every week so they are perfect for offices, homes and retail space.  Our partnership with Hines illustrates how the value of our estate has remained resilient despite the economic difficulties of the last couple of years.

“The result of this partnership will be a great new station for passengers and a major new office development in the heart of the City of London in 2011.”

Mark Swetman, project director, Hines said: “The recession won’t stop Cannon Place becoming a landmark once again. Its design will make it one of the best new office spaces in the City and its location puts it at the heart of the action.  This development is a great opportunity to add value to the City.”

Network Rail is looking to market the unique potential of its massive property portfolio across the UK, which includes some 2,500 stations that act as the gateway to all our major towns and cities.

Masterplans for significant developments at both Euston and Victoria are underway, while opportunities away from London are in progress. A predicted return to growth for British employment in 2011 means that Network Rail are courting developers like Hines now, to take advantage of opportunities in the near future.

Network Rail is looking to establish other development partnerships such as the one with Hines, whilst also promoting single site and multi-site joint ventures such as the Solum Regeneration Ltd vehicle that was established with Kier Property in 2008.