The newly-privatised Royal Mail has sold its former sorting office for Â£111m.
The London office, situated next to Paddington Station, has been sold to a Great Western Developments.
Great Western Developments is owned by Anchorage View and Hotel Properties Limited – both firms from Singapore.
The sale included a deal meaning Royal Mail could collect up to a further Â£20m if Great Western Developments is successful in gaining further planning permission.
Built in 1907, the four-storey office is based in Westminster. The building acted as Royal Mail’s head sorting office.
The Post Office railway ran from Paddington sorting office along to Whitechapel Eastern Delivery Office.
Royal Mail hasn’t utilised the site itself since 2008, however in 2012 did win planning permission to convert the building. The permission won proposed construction of an eight-storey office building with restaurant on ground floor and also of 128 flats.
Royal Mail group property director, Martin Gafsen, said: “Royal Mail continues to seek to optimise value from sites no longer required for operational use and will consider all options as to the manner in which this is achieved.”
Earlier in October, Royal Mail also gained permission to build homes on a section of its Mount Pleasant office located in Farringdon.
By:Â Kirsty MacGregor
News bought to you from DeVono Cresa, the award-winning commercial property advisers, specialising in Central London office, retail and leisure space.