Ballymore makes its stamp as front-runner for Royal Mail site
Published 13/06/2015 | 02:30
Sean Mulryan's Ballymore has emerged as the front-runner to buy the Royal Mail's former distribution centre in the Vauxhall area of London.
Royal Mail announced in November that it had initiated a process to evaluate its options for its former South London Mail centre site in Nine Elms.
If Ballymore is successful, it will be the first major deal secured since the company signed a deal with Malaysian Eco World Investment, which took a 75pc stake in a newly established joint venture company called Eco World Ballymore Holding Company Limited.
The latter then bought three developments from Ballymore for a total consideration of £428.7 million, with Ballymore managing them.
It will also mark a major turnaround for the company which struck a deal with the National Asset Management Agency (NAMA) three years ago setting out how it would repay its debts
The 14-acre site Nine Elms site, close to Battersea Power station, secured planning in March 2012.
The proposed new development includes over six acres of public space, 5,000 square metres of community and retail space, up to 1,870 residential units, car and cycle parking spaces.
Industry magazine Property Week reported that Ballymore and house builder Barrett were among the parties vying for the Royal Mail site, but stated that Barrett was no longer involved.
Mr Mulryan's Ballymore Group returned to profit last August for the first time since the crash.
Under the joint venture deal with Eco World, the assets sold comprised large-scale residential developments at waterside locations at Arrowhead Quay in Canary Wharf, Phase II of London City Island on the Leamouth Peninsula and Phase II of the hugely successful Embassy Gardens in Nine Elms.
At the time, Mr Mulryan described the venture as a significant deal for Ballymore, not only due to the substantial proceeds generated, but also in terms of providing a successful template for how similar developments can be developed jointly in the future.
Ballymore owns and manages developments across London.