CTT creates property vehicle

 In Companies, News

Portugal’s CTT is to create a property management vehicle worth €110 million.

The move has been expected by analysts and Caixabank/BPI which believe that it could bring dividends to the 100% private post office and national savings bank company.
CTT – Correios de Portugal, S.A. (lit. ’CTT – Post of Portugal’) operates as both the national postal service of Portugal and a commercial group with subsidiaries operating in banking, e-commerce, and other postal services.
The new real estate business could not only lead to improved dividends, but also boost its share purchasing programme.
CTT’s strategy — the company is led by João Bento – is to set up two property portfolios with different characteristics.
An income portfolio which will include 400 properties regarding the post office shops and post office ‘points of presence’ worth a net €110 million, and which will now be managed by a vehicle controlled by CTT, but also with new investors who will hold minority shares.
A development portfolio which will have up to 10 properties “with the potential for mixed-use development projects” worth a net of €24 million.
According to ECO, analysts at Caixabank/BPI reckon that the real estate business could mean that CTT could potentially net up to €78 million if it were to sell 49% of the new vehicle and the entire development portfolio, in both cases for the net asset value.