CPI PROPERTY GROUP - Update on Poland Equity Investment

EQS-News: CPI PROPERTY GROUP / Key word(s): Real Estate
CPI PROPERTY GROUP - Update on Poland Equity Investment

24.06.2024 / 19:04 CET/CEST
The issuer is solely responsible for the content of this announcement.

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CPI Property Group
(société anonyme)
40, rue de la Vallée
L-2661 Luxembourg
R.C.S. Luxembourg: B 102 254

Press Release - Corporate News

Luxembourg, 24 June 2024

CPI PROPERTY GROUP - Update on Poland Equity Investment

CPI PROPERTY GROUP ("CPIPG" or the "Group") is pleased to announce further
progress in the Group's strategy to reduce leverage.

Today, CPIPG and our subsidiaries, CPI FIM SA and Czech Property
Investments, a.s., signed a partnership agreement through which the Group
will sell a 49% common equity stake in Vulcanion, a.s. ("Vulcanion") for
EUR250 million to funds managed by Sona Asset Management (UK) LLP, a leading
institutional alternative asset manager. Vulcanion is a holding company
owning eleven office properties in Warsaw and two retail assets in Elblg
and Lublin, Poland. The portfolio's gross asset value is about EUR1 billion;
three of the office properties will remain encumbered by a green loan from
Aareal Bank which matures in 2028.

Following the equity stake sale, CPIPG will retain full operational control
and will continue to consolidate Vulcanion. On a pro-forma basis, the
transaction will reduce the Group's Net LTV by about 1.3%. Funding and
closing are expected by the end of June.

Since CPIPG initiated our asset disposal pipeline in 2022, the Group has
signed more than EUR2.3 billion of sales at average prices close to book
value. CPIPG sees this minority stake sale as a strategic step which
benefits the Group's capital structure going forward. Therefore, this equity
investment is priced at levels consistent with comparable office and
diversified real estate companies trading on the public market. Notably,
CPIPG also retains the ability to repurchase the minority equity stake from
Sona.

"CPIPG is excited about our partnership with Sona," said David Greenbaum,
CEO. "This investment demonstrates the quality of our operations and assets
in Poland and the Group's ability to attract strong capital partners."

CPIPG was advised on structuring and ratings matters by Barclays, Société
Générale and KingsRock Advisors. Dentons served as CPIPG's legal advisor.

For further information, please contact:

Investor Relations
Moritz Mayer
Manager, Capital Markets
m.mayer@cpipg.com

For more on CPI Property Group, visit our website: www.cpigpg.com


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24.06.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        CPI PROPERTY GROUP
                   40, rue de la Vallée
                   L-2661 Luxembourg
                   Luxemburg
   Phone:          +352 264 767 1
   Fax:            +352 264 767 67
   E-mail:         contact@cpipg.com
   Internet:       www.cpipg.com
   ISIN:           LU0251710041
   WKN:            A0JL4D
   Listed:         Regulated Market in Frankfurt (General Standard);
                   Regulated Unofficial Market in Dusseldorf, Stuttgart
   EQS News ID:    1931963

End of News EQS News Service
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1931963 24.06.2024 CET/CEST