Royal Mail sells site for £111m

The Royal Mail has sold a former mail centre for £111m, with the prospect of a further £20m if planning permission is granted.

The one-acre site, next to Paddington railway station in London, is one of three the company is disposing of in the capital following its privatisation a year ago.

Contracts have been exchanged with Great Western Developments, which is owned by Hotel Properties Ltd, a Singapore-based hotels and real estate company.

Planning permission for mixed use of the site was granted in 2012, but the new owners will seek further planning permission, which, if granted, will lead to a further payment of £20m to Royal Mail, which vacated the site in 2008.

Martin Gafsen, group property director at 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.”