Royal Mail share price: Group in discussions over sale of Mount Pleasant site

Talks follow recent disposal of two Nine Elms plots

Royal Mail share price: Group in discussions over sale of Mount Pleasant site

Royal Mail Group (LON:RMG) is in discussions about the possible sale of part of its Mount Pleasant site, the privatised postal operator has said. The news comes after the company recently inked a deal to sell two of the seven plots on its Nine Elms site.

Royal Mail’s share price has gained ground in early trading in London today, having added 0.60 percent to 432.40p as of 08:06 BST, outperforming the benchmark FTSE 100 index which has slipped marginally into the red and is currently 0.13 percent worse off at 7,429.72 points. The group’s shares have lost just under a fifth of their value over the past year, and are down by some six percent in the year-to-date.

Royal Mail announced in a short statement yesterday that it was in discussions regarding the possible sale of part of its Mount Pleasant site, pointing out that the talks were ongoing and there was no certainty if or when a transaction would be agreed.

“A further announcement will be made by Royal Mail if and when required,” the postal operator said. City A.M. noted in its coverage of the news that the announcement followed reports earlier today by Estates Gazette that the 501-year-old firm was in discussions with Taylor Wimpey over a £200 million of the site.

The news comes after Royal Mail recently sold two of the seven plots on its Nine Elms site, for £101 million in cash.

The 15 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 475.00p on the shares, with a high estimate of 590.00p and a low estimate of 350.00p. As of June 16, the consensus forecast amongst 17 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.

As of 08:31 BST, Friday, 23 June, Royal Mail share price is 429.00p.

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