The Portuguese Post Office (Correios de Portugal - CTT) has entered into exclusive negotiations with a third party to set up a vehicle to manage its retail and logistics portfolio worth €134 mln.
The unnamed third party will co-invest in the vehicle, majority-owned by CTT, alongside additional investors.
According to CTT, the process attracted interest from multiple parties, who submitted non-binding offers.
CTT’s real estate assets are composed of two different portfolios.
The Yield portfolio is comprised of around 400 assets in Portugal with a net book value of €110 mln as of 31 December 2021 and a total gross lettable area of around 240,000 m2.
They comprise all CTT’s points of presence, particularly retail stores mainly in city centres, and the warehouses and logistics/distribution centres.
These assets have a multi-use portfolio, namely retail; warehouse/operations; residential; and services/other.
The portfolio also offers potential expansion opportunities in the logistics network, both in Portugal and Spain.
For its part, the Development portfolio comprises of up to 10 assets with a net book value of €24 mln.
They are located in areas with potential for mix-used development projects and may become non-core to CTT’s logistic networks in the near future.
Each of the assets will be considered on a standalone basis, based on the timing to render them vacant; on the potential development opportunities; and on the specific characteristics of each asset.
By setting up the vehicle, CTT aims to maximise the value of the income portfolio, by optimising management, attracting new tenants and seeking micro-development opportunities.
The external asset manager will be responsible for both managing the vehicle and seeking new investors, mainly institutional and family offices, prepared to take a minority stake.
