Leisure business London Tunnels is expected to float on the AIM market sometime around the middle of the year. The company is majority owned by Angus Murray who is the brains behind plans to turn London’s tunnels into a tourist attraction, which showcases the story of the London Blitz.

In October 1940 the UK government decided to build a system of deep shelters linked to existing tube stations intended to house Londoners in the event of an anticipated German bombing. 

Work began a month later and eight tunnels were completed by late 1942. Each has two decks, fully equipped with bunks, medical posts, kitchens, and sanitation.

The shelters and tunnels are thought to be the largest network of underground tunnels in the world.

The tunnels have an illustrious government and military history and have housed a reserve war room, special operations, and MI6 personnel. Towards the end of 1942, part of Goodge Street shelter was made available for general Dwight Eisenhower’s headquarters.

In the 1950s Chancery Lane was converted into a 500-line trunk telephone exchange with a six-week food supply and its own artesian well.

It was connected to 12 miles of seven feet diameter deep cable tunnels constructed after the war by the Post Office. This played a role during the Cuban Missile crisis by facilitating direct communications between the UK and US.

Murray believes the network of tunnels could accommodate around three million tourists a year. There are plans to create different themes for each tunnel including a memorial for the people who lost their lives during the bombing.

London Tunnels purchased the freehold from BT (BT.) which has been selling assets in recent months including the iconic BT Tower.

Murray does not anticipate raising any new money when the company floats on AIM because the company has all the working capital it needs at the current juncture. The free float is anticipated to be around 30%.

Murray told Shares there has been a lot of investor interest in the company since announcing its intention to float in January 2024.

The company is currently working through phase one of the project which involves various planning applications. The second phase will involve raising around £120 million in project debt finance to complete the conversion works.

If all goes to plan, the attraction is expected to open to the public in the second half of 2027. London Tunnels intends to outsource management of the attraction to a large operator such as Merlin Entertainments, benefiting from its scale and expertise.

Merlin’s current sites include Legoland, Chessington World, Thorpe Park and Madame Tussauds. 

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