Exchange of contract for sale of Nine Elms plot
Royal Mail plc
(Incorporated in England and Wales)
Company Number: 8680755
LSE Share Code: RMG
17 January 2019
ROYAL MAIL PLC
EXCHANGE OF CONTRACTS WITH GALLIARD HOMES FOR SALE OF 0.9 ACRE PLOT ON NINE ELMS PARK SITE
Royal Mail plc (RMG.L) announces that contracts have been exchanged unconditionally for the sale of a 0.9 acre plot (Plot C) on its Nine Elms Park site to Galliard Homes for £22.2 million in cash.
Galliard Homes intends to develop 262 residential units on Plot C, of which 25 per cent will be affordable housing. The new residential development will be delivered by Galliard Homes in partnership with O'Shea.
Royal Mail's former South London mail centre site in Vauxhall, South London - now known as Nine Elms Park - covers approximately 14 acres, of which 8.35 acres are developable pursuant to the outline planning consent granted by the London Borough of Wandsworth (LBW) in March 2012.
Nine Elms Park is centred on a linear park, which runs the length of the site east to west, alongside residential-led development and commercial space. It extends from the new US Embassy to the planned Northern Line extension, which will provide two stations within walking distance.
With a masterplan by architects Allies and Morrison, Nine Elms Park comprises seven development plots and Plot C is the third plot to be sold, sitting on the southwestern edge of the regeneration area, overlooking the designated Park Basin communal/cultural open space, adjacent to the area of the site committed for a school.
The contracts for the sale are between Royal Mail plc and Galliard SPV [GDL (Nine Elms) Limited]. A 15 per cent deposit of £3.33 million has been paid following exchange of contracts. The remaining £18.87 million is payable on completion, which will be at the end of June 2019.
Martin Gafsen, Group Director of Property & Facilities Solutions, Royal Mail, said: "The sale of the third plot on our Nine Elms site to Galliard Homes marks the next step in our contribution to the emerging residential community in this exciting new area of the capital."
Stephen Conway, Executive Chairman of Galliard Homes said: "Galliard Homes is pleased to have acquired this central London consented site, which once complete will be located within a park setting, just a short walk to the River Thames and Houses of Parliament. The wider regeneration area is creating a new destination for South London and has already attracted several major occupiers."
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About Royal Mail plc
Royal Mail plc is the parent company of Royal Mail Group Limited, the leading provider of postal and delivery services in the UK and the UK's designated universal postal service provider. UK Parcels, International and Letters ("UKPIL") comprises the company's UK and international parcels and letters delivery businesses operating under the "Royal Mail" and "Parcelforce Worldwide" brands. Through the Royal Mail Core Network, the company delivers a one-price-goes-anywhere service on a range of parcels and letters products. Royal Mail has the capability to deliver to around 30 million addresses in the UK, six days a week (excluding UK public holidays). Parcelforce Worldwide operates a separate UK network which collects and delivers express parcels. Royal Mail also owns General Logistics Systems (GLS) which operates one of the largest ground-based, deferred parcel delivery networks in Europe.
About Galliard Homes
Founded in 1992, Galliard Homes is one of London's largest developers. Over its 26-year history the Galliard Group has evolved from its residential property origins to be a leading authority and expert in construction and the development of large mixed-use schemes and commercial hospitality premises. The group has over 700 staff and a development portfolio worth over £3.8 billion currently under construction, including nearly 7,000 homes and 290 hotel suites, across two new hotels. Galliard Homes is involved in the regeneration of the former Royal Mail North London sorting and delivery centre in Islington into Islington Square, a new mixed-use development. Through strategic joint venture partnerships Galliard Homes has steadily moved into other key cities throughout the UK, and 2017 saw the group acquire a portfolio in Birmingham with a gross development value of over £500 million. Led by Executive Chairman Stephen Conway, who founded the company, Galliard Homes is a development partner of Cain International, Frogmore, McCourt, O'Shea, Vanke, Acorn and Apsley House Capital. Galliard Homes is award winning and in recent years has won international prizes for its development's The Chilterns, Baltimore Tower, Metropolitan Crescent and The Stage, to name a few. Its nominated charity is Great Ormond Street Hospital Children's Charity and the group actively seeks opportunities to work with the communities in which it develops. Galliard HR has three strands to it and the company is passionate about growing and developing its workforce. Through its three schemes; Evolve, Elevate and Engage, Galliard HR works from internship level up to support its staff and employ the best in business.
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