Deutsche Postbank to sell EUR 1bn portfolio

Deutsche Postbank is selling the bulk of its real estate, worth some EUR 700 - 800mln, in a sale-and-leaseback deal which would replicate the move announced by its owner, Deutsche Post, in April. Deutsche Postbank has hired investment bank Morgan Stanley to sell the Victor portfolio consisting of 25 office building located across Germany's largest cities, newspaper the Financial Times Deutschland reported. The portfolio does not include the company's retail banking outlets. The German retail bank aims to receive non-binding offers for the portfolio within the coming four to five weeks, the newspaper said.

In April, Deutsche Post sold a portfolio of 1,300 real estate assets to US investor Lone Star in a cash transaction worth EUR 1bn. Most of the assets are in Germany. Deutsche Post World Net said it was divesting the real estate assets as part of its 'Roadmap to Value' capital markets program presented in November. The German group had already disposed of EUR 350mln of real estate since the introduction of the programme.

Under the terms of the agreement with Lone Star, the transfer of the real estate assets will take effect on 1 July this year. 'Deutsche Post World Net will lease back the major part of the properties under an innovative lease agreement giving the group immediate relief from excess space and flexibility going forward. The transaction will not lead to any changes for customers or employees,' Deutsche Post said.