Royal Mail share price: Company reviews Nine Elms site future

on Nov 12, 2014
Updated: Apr 9, 2020
Listen, Wednesday, November 12: Royal Mail (LON:RMG) is looking to dispose of one of its former London sorting offices, with options for a sale or development venture to be considered.

The postal services firm revealed in a statement yesterday that it would make a decision on the 14-acre Nine Elms site located near Battersea Power station, south London, once it had reviewed all options.
Analysts at Berenberg have valued the asset at as much as £662 million. Property experts believe that there will be no shortage of demand, with existing multiple Chinese and southeast Asian property interest in the area, the creation of an ‘embassy quarter’ with the US and Dutch diplomatic corps moving in and China eyeing opportunities for its London representatives. The arrival of a new London Underground line and, later, Crossrail 2, in the area also add to the site’s attraction, market watchers point out.

Royal Mail’s property director Martin Gafsen, said: “Nine Elms is a key area of regeneration in London and we look forward to our former mail centre site being part of a thriving, revitalised area.”
The site, which has planning consent for development, was closed in 2012. It is one of three London properties which have been closely followed by analysts since the company’s privatisation last year, with valuation estimates totalling between £250 million and £1 billion. Another of the three, its Paddington site, was sold last month for £111 million, with other options meaning the price could rise (Royal Mail share price: Company sells former mail centre site for £111 million ).

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*h*Analyst on Royal Mail share price*h*
As of 12:15 GMT, Royal Mail’s shares were trading 0.04 percent higher at 458.18p.
Of the 16 analysts projecting 12 month price targets for the FTSE 100-listed company for the Financial Times, the median target is 457.50p, with a high estimate of 700.00p and a low of 377.00p.
According to the FT, as of 8 November 2014, the consensus forecast amongst 27 polled investment analysts covering Royal Mail has it that investors should hold their position in the company.
**As of 12:13 GMT, buy Royal Mail shares at 458.40p.**
**As of 12:13 GMT, sell Royal Mail shares at 458.00p.**


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