Disposal of surplus Royal Mail property agreed
Royal Mail announced a deal with Land Securities Trillium (LST), a Land Securities Group business, for the disposal of a portfolio of 285 surplus or partially-occupied premises. The deal, which followed a robust competitive process, is a key element in Royal Mail’s drive to increase efficiency and compete effectively in the UK postal market.
Some 108 of the properties are surplus to Royal Mail’s operations and LST will utilise its skills to refurbish these and seek new occupiers. Of the remaining 177 properties only part of the space is being used for operations and these will be leased back to Royal Mail for 15 years at a competitive rent. The properties comprise a total of 265K sq.m. in locations across the UK. This deal will have no impact on Royal Mail or Post Office® operations.
The net proceeds for the portfolio of assets and leasehold liabilities were in excess of GBP 70 million. This represents an excellent deal for Royal Mail that takes advantage of the strength of the UK real estate market to realise value whilst streamlining its operations by removing surplus space from the portfolio with a significant annual saving in costs.
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