Property developers circle key Royal Mail site

[TrueBlueTerrier]

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Some of Britain's leading property companies are queueing up to acquire a Royal Mail depot earmarked to become one of the West End's largest ever development projects

Land Securities, Derwent London and Great Portland Estates are all understood to be interested in buying Royal Mail's Rathbone Place, just north of Oxford Street.

Royal Mail has submitted proposals to Westminster City Council for a 600,000 sq ft mixed-use redevelopment at the site, called Newman Place. This includes a new street, public square, offices, homes and retail units which will drive forward regeneration of the east end of Oxford Street.

The scale of the site and West End planning restrictions mean it has become one of the most sought-after plots in Central London.

Land Securities, Derwent and GPE are significant landowners in the Fitzrovia area already. Land Securities, Britain's biggest listed property company, holds buildings adjoining Rathbone Place.

Industry sources say the Royal Mail is planning to bring the site to market as early as this year, which would allow a developer to take the scheme forward. It has hired Jones Lang LaSalle as an adviser.

Royal Mail plans to close Rathbone Place and to relocate management and administrative staff to Mount Pleasant by 2013. A planning decision is expected in the autumn. The controversial move has angered staff and raised the prospect of redundancies. Last week, postal workers in London voted for strike action. Unions accuse Royal Mail of closing Rathbone Place "to asset-strip and cash in on the value of the property".

A spokesman for Royal Mail said: "The [Rathbone Place] site has tremendous potential in its own right and as a catalyst for regeneration of the east end of Oxford Street. 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... work with planning authorities to ensure that the properties we are selling are attractive to new owners. "

[Stormproof]

Royal Mail is planning to bring the site to market as early as this year

Of course they want to sell it asap, once all the land from all the closed sites is sold and the government have taken the money we will be privatised.

[thelastpostie]

Royal Mail has one of the largest land/property porfolio's in the country. It would interesting to see if they're selling the freehold or leases on properties they own?
Don't be surprised if Royal Mail Property Holdings is eventually floated as a separate compnay post privitisation.

[westlondonpostie]

Strange that when Cross-rail wanted to compulsory purchase part of the car park for storage of equipment and machinery, but Royal Mail said it was essential to it's business plan that the Office stay as it was.
Now it's being sold less than 2 years later, just so those upstairs can claim a big bonus for increasing profits by £100 mill.

[clashcityrocker]

I thought the money from the sale of Rathbone Place was to be used to fund our Colleagueshares payout.

[DGP1]

I thought the money from the sale of Rathbone Place was to be used to fund our Colleagueshares payout.

[brothermagrew]

Think you will find the money has been earmarked for the top managerial echelon bonuses.

[Dorset Plodder]

Oh you bunch of Cynics.I'm sure Royal Mail will want to share their good fortune with us all!

[blue1873]

Cynics on here,now that's hard to believe
I like your good self DP am of the opinion that our
honourable head honchos will spread good cheer
amongst all RM employees fairly and evenly by
SHARING all monies received from the sale of
any Royal Mail properties with us.I also believe
that Lord Lucan will ride Shergar at the head of
the Lord Mayor's Parade this year........naked