Deal secured on Woolwich station box

In 2007 an initial agreement was reached that Berkeley Homes would build the basic box structure of a station at Woolwich, and subsequently construct its own extensive mixed use development above it.  The plan was that Berkeley’s development could benefit from a future Crossrail station if it contributed to it. The basic box would be done at Berkeley Homes' cost and risk, to the specification laid down by Crossrail, in a way that ensured that the Woolwich Station Box did not add to the current cost of Crossrail. It could be fitted out to become a station at a later date.

The Department for Transport, Crossrail, Transport for London, and Berkeley Homes have in recent months been working urgently to turn this initial agreement into a final, legally binding, agreement. The parties were negotiating against the clock as it would soon have been too late to incorporate the box into tunnel construction. However, a deal has now been reached.

In a written statement to Parliament, the Secretary of State for Transport Philip Hammond said: "I am pleased to inform the House today of a positive conclusion to discussions with Berkeley Homes on the funding of Woolwich Station Box.

“This means that engineering work on Woolwich Station Box can now proceed and the benefit of Crossrail investment can be secured for the residents of Woolwich.

“In due course, fit-out of the Woolwich Station Box would be required to bring it to operational status.  Government is clear that, in line with the 2007 agreement, no additional public sector contribution can be made available to fund the fit-out of the Station Box. Instead, the fit-out is conditional on receiving sufficient funding contributions from developers and businesses operating in the area. Berkeley Homes has an obligation to enter into discussions with Department for Transport, Transport for London, Crossrail Ltd and Greenwich Council, in order to provide for the subsequent fitting-out of the Station Box. All parties, including Berkeley Homes, have made clear that they understand and support this position.

“I shall update the House as and when progress is made in relation to the private-sector funding of the station fit-out.”

Crossrail chief executive Rob Holden said: “I’m delighted that the legacy of Crossrail investment has been secured at Woolwich. Crossrail will transform journeys across the capital, particularly from south east London. Construction work on the new station box will get underway shortly.”

Berkeley Homes chief executive Rob Perrins added: “This is an exciting project and Berkeley is looking forward to working in partnership with Crossrail in the delivery of a major new transport system for London and, in particular, in providing the Station Box at Woolwich.

"Berkeley has always been totally committed to having a Crossrail station within its flagship development at the Royal Arsenal and it is hoped that with the Partners signing the contracts for the Station Box today that this will now become a reality. 

"Berkeley is delighted that its financial strength has enabled it to make a substantial investment in the Royal Arsenal station having now acquired the remaining land from the LDA and secured a planning consent for another 3700 homes and a significant area of commercial space to complete the regeneration of this important part of London. 

"However, there is still much to do to raise funds to ensure the Station Box is fully fitted out as an operational station at no net cost to the public purse. I have every hope that this can be achieved.”

Got a story? Email news@theconstructionindex.co.uk