14th Oct 2014 14:17
LONDON (Alliance News) - Royal Mail PLC. (RMG.L) announced 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 111 million pounds 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 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% ultimate shareholding, and Anchorage View Pte Limited, which has a 30% shareholding, both via a joint venture holding company.
In November 2012 Westminster City Council resolved to grant planning permission 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 20 million pounds 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% of any net sale proceeds above the 111 million pounds purchase price if sold within the first year and 25% if sold within the second year.
A ten per cent non-refundable deposit of 11.1 million pounds is payable upon exchange of contracts. The remaining proceeds will be payable upon completion, which is expected to take place on 8 December 2014.
The company said it will use net cash proceeds of the sale of around 108 million pounds for general corporate purposes.
Copyright RTT News/dpa-AFX
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