Portuguese postal operator Correios de Portugal (CTT) and real estate company Sonae Sierra have set up an investment vehicle to hold and manage CTT’s real estate assets.
CTT Imo Yield will be a special purpose vehicle with a 10-year duration in the form of a real estate fixed capital investment company.
It will be responsible for 398 logistics, retail and mixed-use properties in Portugal, totalling 240,000 m2 of gross leasable area, representing €105 mln of book value and €139 mln of transaction value.
The real estate assets are in prime and secondary locations in Portugal, with more than 50% concentrated in the districts of Lisbon and Porto.
They are part of CTT's current and future logistics and retail networks, with CTT becoming the main tenant under long term leases, representing 75% of gross leasable area.
CTT rents, inflation-linked, will amount to €9.5 mln in year one.
The transfer of the assets to CTT Imo Yield will take place in two distinct phases.
Phase one, to be concluded during H2 2023, foresees the transfer of properties corresponding to at least 75% of the agreed value, while the second phase will occur 12 months later, with the transfer of the outstanding properties.
The postal operator will sell 3.6% of the vehicle to Sonae Sierra for €5 mln, while other investors, both institutional and family offices, will acquire a 26.5% stake, investing €37 mln.
The transaction will allow CTT to remain owner of its core real estate portfolio, while crystallising and enhancing its market value.
The transaction is subject to the necessary authorisations from market regulator CMVN and the non-opposition by the Competition Authority.
