Deutsche Post World Net announced yesterday it will sell a portfolio of real estate propertiescomprising about 1,300 assets located mainly in Germany to US investor Lone Star in a cash
transaction worth EUR 1 billion. The sale-and-leaseback property deal is part of the “Roadmap toValue” capital markets program presented last November.The properties affected are overwhelmingly older buildings built before 1990, and comprisemostly former post offices, some branches and smaller sorting offices in secondary locations,German media reported. It has not yet been decided how to use the proceeds but a DPWN spokeswomanwas cited as saying the “interests of shareholders” would be taken into account.
Under the terms of the agreement, the transfer of the real estate assets will take economiceffect as of July 1, 2008, DPWN said. The all-cash sale price will be paid in several tranches withthe largest share expected by year-end 2008. The agreement will have only marginal effect on GroupEBIT and will not affect the 2008 earnings guidance.
Deutsche Post World Net said it will lease back the major part of the properties under aninnovative lease agreement giving the group immediate relief from excess space and flexibilitygoing forward. The transaction will not lead to any changes for customers or employees.
“We are very committed to the Roadmap to Value initiatives and this transaction againdemonstrates our constant focus on quick execution,” said Chief Financial Officer John Allan.
The transaction comes on top of some EUR 350 million of real estate sales agreed since lastNovember, DPWN said. The group had thus already more than delivered on its pledge to generate atleast EUR 1 billion in cash from real estate sales by 2009.
