Royal Mail PLC Disposal of Paddington site (2666U)
14 Oktober 2014 - 2:45PM
UK Regulatory
TIDMRMG
RNS Number : 2666U
Royal Mail PLC
14 October 2014
Royal Mail plc
14 October 2014
Disposal of Paddington site
Royal Mail plc (RMG.L) today announces that contracts have been
exchanged for the sale of its former Paddington mail centre site at
London Street, W2 to Great Western Developments Limited for GBP111
million in cash, payable to Royal Mail Group Limited.
The one-acre site is adjacent to the Paddington main line
railway station in central West London. It is part of Royal Mail's
'London Development Portfolio', which comprises surplus(1) sites
Royal Mail has identified for potential sale or redevelopment in
London. Royal Mail vacated the Paddington site in 2008 and
operations relocated to Mount Pleasant.
Great Western Developments Limited is owned by Hotel Properties
Limited, a listed Singaporean hotels and real estate company, which
has a 70 per cent ultimate shareholding, and Anchorage View Pte
Limited, which has a 30 per cent shareholding, both via a joint
venture holding company.
In November 2012 Westminster City Council resolved to grant
planning permission(2) for Royal Mail's mixed use scheme on the
site. The purchaser intends to seek further planning permission
which, if granted, will require the purchaser to pay a further
GBP20 million to Royal Mail Group Limited. In addition, if the
purchaser sells the site within two years of completion, it has
agreed to pay Royal Mail Group Limited 50 per cent of any net sale
proceeds above the GBP111 million purchase price if sold within the
first year and 25 per cent if sold within the second year.
A ten per cent non-refundable deposit of GBP11.1 million is
payable upon exchange of contracts. The remaining proceeds will be
payable upon completion, which is expected to take place on 8
December 2014. Net cash proceeds of the sale of around GBP108
million will be used for general corporate purposes. The site had a
net book value at 30 March 2014 of GBP1.6 million. The net book
value reflects the purchase of the land over a number of years,
beginning in 1889, subsequent building and development and Royal
Mail's policy of depreciating freehold properties over a period of
up to 50 years. In addition, around GBP30 million has been invested
in buying, building and fitting out the site over the years.
Martin Gafsen, Group Property Director, Royal Mail said: "Royal
Mail continues to seek to optimise value from sites no longer
required for operational use and will consider all options as to
the manner in which this is achieved."
Notes
1 The other surplus sites continue to have some operational
activity
2 Subject to signing a s106 agreement, a contract which
describes and secures the contributions of money and works
towards public facilities and policy objectives
For more information contact:
Media
Candice Macdonald
Phone: 07436 267324
Email: candice.macdonald@royalmail.com
Neil McCrae
Phone: 07776 995738
Email: neil.mccrae@royalmail.com
Investor Relations
Catherine Nash
Phone: 020 7449 8183
Email: investorrelations@royalmail.com
Company Secretariat
Kulbinder Dosanjh
Phone: 020 7449 8133
Email: cosec@royalmail.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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