Logistics giant Deutsche Post to unload property worth 1.5 bln euros
Deutsche Post plans to sell property worth up to 1.5 billion euros (USD 2.17 billion) to generate cash and boost its shares, a press report said yesterday.
Deutsche Post said it had hired U.S. bank Morgan Stanley to organize the sale of real estate it was no longer using or which will be emptied soon, the Financial Times Deutschland said, citing industry sources.
Deutsche Post, which owns the logistics company DHL, wants to boost its profitability in the face of disgruntled investors who have seen their shares fall below the level they were listed at in November 2000.
The property reportedly includes offices, warehouses and distribution centers, including 50 sites outside Germany, which had potential annual rental income of around 90 million euros, the report said.
A spokesman for Deutsche Post declined to comment.
Deutsche Post’s chief executive Klaus Zumwinkel and chief financial officer John Allan were set to present a new capital market strategy Thursday when the group releases its third-quarter earnings.
In its 2006 annual report, Deutsche Post said it owned real estate worth 5.22 billion euros.
The news boosted Deutsche Post shares, which gained 1.29 percent to 20.34 euros in morning trading on the Frankfurt stock exchange, where the DAX index of leading shares was 0.36 percent higher overall. Deutsche Post shares had traded at 21.4 euros in November 2000.
