The Sphinx's plot Will new Royal Mail owner sell off valuable properties?

Will new Royal Mail owner sell off valuable properties?

- Rob Davies

The shadow of the sphinx looms large over a nondescript urban depot in north London. You could fit two football pitches onto the vast King's Cross site - a rarity in this densely populated part of the capital - yet it makes up just a fraction of a vast freehold estate the keys to which are about to be handed to the billionaire Daniel Křetínský.

Known as the Czech Sphinx because of his inscrutable demeanour, Křetínský is poised to complete his conquest of Royal Mail via a £3.6bn takeover of its parent company, International Distribution Services (IDS).

The government's blessing for the deal, given last week, will make him the first individual to control Britain's postal service since it was privatised in 2013. Indeed, he will be one of just a handful to have held sole dominion over it since Henry VIII, who founded it in 1516.

Křetínský's own kingdom will comprise approximately 1,800 properties covering about 300 hectares (741 acres). The Parcelforce London central depot in King's Cross will be one of the jewels in his crown. Royal Mail put the site up for sale in March 2023 as part of a plan to move its operations to a new industrial park in Tottenham, north London. The property was withdrawn from the market in July 2023 amid volatile conditions, but IDS confirmed to the Guardian it is up for sale again.

Land Registry records show that in July this year, after accepting Křetínský's offer, IDS transferred the site between two companies, with the newly created IDS Propco 1 Ltd paying £90m to Royal Mail Group Ltd.

However, property experts said the value of recent residential and commercial developments in the area indicated the plot could be worth significantly more, particularly if the new owner can secure planning consent in advance of finding a buyer. The formation of a second company, IDS Propco 2 Ltd, suggests similar transactions may be afoot.