Deutsche Post to Sell
Properties to Lone Star

FRANKFURT -- German logistics and mailing company Deutsche Post AG said Tuesday it will sell a real estate portfolio worth €1 billion ($1.58 billion) to U.S. investor Lone Star.

Deutsche Post's real estate properties contained in the agreement comprise around 1,300 assets, mainly in Germany. The transaction will have only marginal effect on group earnings before interest and taxes and won't affect 2008 earnings guidance.

The portfolio will be sold through a cash transaction, which will be paid in several tranches. The major part of the sale price is expected to be completed by the end of 2008.

The Bonn, Germany-based company has now already delivered its promise to generate at least €1 billion from sales of its real estate portfolio by 2009.

The deal with Lone Star comes on top of some €350 million from real estate sales since November 2007.

Under the terms of the agreement, the transfer of the real-estate assets will take economic effect as of July 1. Deutsche Post will lease back the major part of the properties under a lease agreement giving the group immediate relief from excess space and flexibility going forward.

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