154
154
  • Transaction / Assets
    Correios Sells Building on the Rua da Palma in Lisbon for 10.3 Million Euros
  • Seller
    Correios
  • Buyer
    n/a
  • € MM
    10.3

Correios Sells Property in Lisbon for 10.3 Million Euros

15 May 2018

CTT had announced its intention to sell about 30 properties as a part of its restructuring plan of December of last year.

The Portuguese Correios [Postal Service] sold a building on the Rua da Palma in Lisbon for 10.3 million euros. The name of the buyer was not disclosed. The deal will result in a gain of 8.5 million euros before taxes, leaving CTT with a total of 7.4 million euros (taxes of €1.1 million). The information was provided by the company headed by Francisco Lacerda and follows “its policy of disposing of non-strategic assets provided that the necessary market conditions be met,” the Securities and Exchange Commission (CMVM) said in a statement.

CTT also announced that it had already a million-euro deposit. The remainder will be paid when the deed is signed, which should happen within a maximum of six months. The sale is, however, “subject to the non-exercise of pre-emption rights regarding the sale of these properties by the administrative authorities that legally benefit from such rights.”

In the restructuring plan, the Correios announced its intention to sell approximately 30 properties, having already sold off its building on Rua de São José, which served as the company’s headquarters for many years. Just the sale of this manor brought in 25 million euros to the company’s coffers, with a registered gain €16 million. The deed that formalised the sale was signed on December 15 of last year.

Restructuring plan in progress

Towards the end of 2017, CTT announced a restructuring plan that aims to eliminate roughly 800 operational jobs over three years as a result of the fall in mail traffic.

At the same time, the company intends to optimise the coverage of its brick and mortar network by converting additional stores to post offices or closing those stores with low traffic from customers.

Original Story: Jornal Sol – Sónia Peres Pinto

Translation: Richard Turner