Daily Telegraph - August 27, 2006
Royal Mail has embarked on a wholesale clear-out of its property portfolio. The move is part of the group's attempt to become more commercial in the wake of the opening up of the postal market to competition earlier this year. It is looking to dispose of 130 of its disused post offices, sub post offices and delivery centres that are loss making. It will also transfer of ownership of a further 180 properties to a commercial buyer.
The move comes after Royal Mail executives revealed that a commercially viable postal network would comprise just 4,000 post offices, compared with the current 14,500. Royal Mail said the 310 properties represented only 2.9 per cent of its total operating space and that it intended to lease back any property that it still required.
The funds raised from the disposal will be used to modernise Royal Mail's facilities and equipment. The company expects to generate cost savings in the region of £5m.
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