Postal Service Has Harder Time Selling Off Real Estate
Eesti Post continued to sell off real estate last year, albeit at a slower pace, and failed to close sales about half the time.
In 2011, the state-owned postal service sold 11 properties, less than the total of 32 sold in 2009 and 2010.
"The changeover to the euro in 2011 did not increase interest in the postal service's real estate," said director of the company's administrative division, Kaido Padar. But he still termed last year successful for the company.
"Although real estate experts said only apartments get purchased and people are playing a waiting game, interest picked up in the second half and prices were bidded up."
Padar said the properties had major investment needs and there was a low revenue base, which made it difficult for the buyers to obtain financing.
Eesti Post has 63 pieces of real estate. In 2009, it announced it was considering setting up a real estate division and was changing its model to one where it would rent space.
Eesti Post invests the proceeds of the selloff into developing logistics and information logistics services in the three Baltic states.
Kristopher Rikken