Royal Mail sells off former Caversham Road centre

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Royal Mail has sold the former mail centre in Caversham Road.

The 6.5 acre site to the north of Reading Station has been bought by Hermes Property Unit Trust for a reported £12 million.

It is currently let to Network Rail until 2015.

The site has outline planning permission for a mixed use scheme including offices, homes, hotel and leisure in a phased development of up to 740,000sq ft.

Royal Mail group property director Martin Gafsen said: “This transaction represents the culmination of several years of work and the advantages of a joined-up approach between Reading Borough Council, Network Rail and Royal Mail. We are very pleased with the outcome.

“Royal Mail has a clear strategy to ensure we derive maximum value from any property we no longer require. This includes selling the freehold or leases which we hold, and, where appropriate, working with planning authorities to ensure that properties we are selling are attractive to new owners.

“We have a strong track record in using the proceeds from disposal of surplus property to invest in the mail operation.”

Hermes Real Estate Investment Management Ltd fund director Chris Matthew said: “This is a strategic site that adjoins one of the South East’s most important rail interchanges.

“Network Rail is investing £850 million in a major upgrade programme of the station, and the site will be linked to a new northern station entrance via a new public square.”

The Royal Mail centre was built in 1986 on the site of the former British Rail Signal and Telecommunications works, but closed in 2009.