Royal Mail PLC Exchange of contract for sale of 2 Nine Elms Plots (0837H)
05 Juni 2017 - 8:00AM
UK Regulatory
TIDMRMG
RNS Number : 0837H
Royal Mail PLC
02 June 2017
2 June 2017
FOR IMMEDIATE RELEASE IN ACCORDANCE WITH LISTING RULE 1.3.4R
Royal Mail plc
Exchange of contracts for sale of two plots on the Nine Elms
site
Royal Mail plc (RMG.L) announces that conditional contracts have
been exchanged for the sale of two of the seven plots (Plots B and
D) on its Nine Elms site to Greystar for GBP101 million in cash.
Royal Mail's site covers approximately 14 acres of which 8.35 acres
are developable pursuant to the outline planning consent. Plots B
and D comprise of 2.67 acres.
Greystar is a US entity that provides multifamily and student
accommodation, providing vertically-integrated real estate services
across property management, investment management and development
and construction services. Greystar intends to develop
purpose-built, high specification private rental apartment
buildings on the two plots.
A deposit of GBP3 million has been paid to Royal Mail following
the exchange of contracts. The remaining GBP98 million is
conditional upon Greystar receiving planning consent from the local
authority for its detailed designs for the two plots. Subject to
the London Borough of Wandsworth's planning process and timescales,
such consent is expected to be granted before the end of Royal
Mail's 2017-18 financial year.
The proceeds of this sale will be used for general corporate
purposes, with around GBP30 million committed to be re-invested
into the Nine Elms site for infrastructure works to serve plots B
and D and to support future plot developments. This is expected to
benefit future sales values. As at 26 March 2017, Royal Mail had
achieved cumulative net cash inflow from its London Development
Portfolio of GBP43 million and Plots B and D had a net book value
of GBP12.9 million.
Martin Gafsen, Group Director of Property and Facilities
Solutions, Royal Mail said: "We believe that Greystar's strategy of
developing private rental accommodation will help the ongoing
transformation of Nine Elms and will benefit the other plots on the
Royal Mail site. The opening of the US Embassy and the new Northern
Line Extension - along with the delivery of this first phase of
development and the associated park on the Royal Mail site - will
see the emergence of a residential community in this exciting new
area of the capital."
This announcement contains inside information.
Ends
For more information contact:
Media
Julie Pirone
Tel: 07711 446 358
Email: julie.pirone@royalmail.com
Sally Hopkins
Tel: 020 7449 8252/07801 094345
Email: sally.hopkins@royalmail.com
Investor Relations
Catherine Nash
Tel: 07436 560910
Email: investorrelations@royalmail.com
Company Secretariat
Kulbinder Dosanjh
Tel: 07776 991449
Email: cosec@royalmail.com
About Royal Mail plc
Royal Mail plc is the parent company of Royal Mail Group
Limited, the leading provider of postal and delivery services in
the UK and the UK's designated universal postal service provider.
UK Parcels, International and Letters ("UKPIL") comprises the
company's UK and international parcels and letters delivery
businesses operating under the "Royal Mail" and "Parcelforce
Worldwide" brands. Through the Royal Mail Core Network, the company
delivers a one-price-goes-anywhere service on a range of parcels
and letters products. Royal Mail has the capability to deliver to
more than 29 million addresses in the UK, six days a week
(excluding UK public holidays). Parcelforce Worldwide operates a
separate UK network which collects and delivers express parcels.
Royal Mail also owns General Logistics Systems (GLS) which operates
one of the largest ground-based, deferred parcel delivery networks
in Europe.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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