CTT and Sonae Sierra announced an agreement for the creation of an investment vehicle, dedicated to the management of CTT's real estate assets, which include approximately 400 logistics, retail and mixed-use properties, distributed throughout the national territory.
The real estate assets held by CTT will be integrated in this vehicle, and it is intended that they continue to be fully consolidated by CTT. Yield Portftolio is composed of 398 assets with more than 240 thousand square meters of total gross leasable area, with an agreed transaction valuation of 139 million euros.
The portfolio in question comprises real estate assets of various types, namely retail, logistics, offices and others, in prime and secondary locations in Portugal, with 55% of its value concentrated in the districts of Lisbon and Porto.
Within the scope of this new strategy, CTT signed an SPA with Sierra, according to which "Sierra will acquire a 3.6% stake for 5 million euros in the SPV", according to a statement to CMVM. Following the conversion, Sierra "will be appointed as manager of the income portfolio and as management company of the SICAFI. Together with Sierra's investment, additional investors, both institutional and family offices, will acquire a 26.5% stake, representing an investment of 37 million euros", the statement said.
João Bento, CTT's CEO, reveals that "it is with enormous satisfaction that today we announce the creation of this vehicle for the management of CTT's real estate assets. This very relevant step marks the beginning of the valuation strategy for these assets, with an innovative model that will allow for a dynamic management of the portfolio, following the evolution of the needs of the company and the market, both in Portugal and in Spain. Choosing a partner with great experience in managing these assets allows us to capture investment, increase the value of the assets and have specialised support for the need to relocate to more interesting areas, while maintaining the focus on our core activity".
Luis Mota Duarte, CFO and Head of Investment Management at Sierra, states that "this operation fits into Sierra's Investment Management business growth strategy, focused on the creation of vehicles adapted to the profitability and sustainability objectives of different types of investors. CTT's trust reinforces Sierra's position as a reference real estate investment manager in the Iberian Peninsula, and results from the proven skills we have in the various areas we operate in the market, from Investment to Development, Asset and Property Management, which together make up the entire development and management cycle of an asset, and allow us to deliver strategic, commercial and operational value, in a customized manner, to better guarantee sustainable profitability".
Sierra will maximise the value of CTT's assets in order to attract investment
Sierra will be committed to "maximizing the value of the assets under management, through the optimization of the occupation of spaces, the attraction of new tenants and types of use, and the search for expansion opportunities, namely in the logistics network in Portugal and Spain, thus reinforcing the attractiveness of a unique product in the country, for a diversified range of investors", the statement said.
The launch of the vehicle will strengthen the company's focus on its Investment Management area, where it continues to expand its business, currently managing a group of 16 investment vehicles worth 6.3 billion euros.
For CTT, this transaction aims to improve the efficiency of the operation of retail and logistics real estate assets; crystallise the value of the income portfolio; improve CTT's liquidity position, increasing the alternatives for future capital allocation opportunities.
