Metro 'not likely to sell its real estate'

German retailer Metro is not likely to sell its real estate portfolio, according to analysts at investment bank Morgan Stanley. The bank added that the size of Metro's real estate assets has been inflated. Morgan Stanley values Metro's property assets at EUR 2.4 bn, well below the EUR 10 bn mentioned in earlier press reports. The bank said the disposal of the retailer's real estate would translate into a fair value of no more than EUR 72 per share.

The Morgan Stanley analysts did not rule out a sale of Metro's department store division Kaufhof, valued at EUR 2.7 bn. Earlier this month, Metro asked Germany's cartel office for permission to increase its stake in Metro Asset Management from 49% to 98%, which was interpreted by some observers as a sign that Metro was selling off its real estate operations.