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EQS-News: CPI PROPERTY GROUP / Key word(s): Real Estate
CPI PROPERTY GROUP - Update on Poland Equity Investment
2024-06-24 / 19:04 CET/CEST
The issuer is solely responsible for the content of this announcement.
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 Elblag 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

2024-06-24 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com  
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 2024-06-24 CET/CEST

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END) Dow Jones Newswires

June 24, 2024 13:04 ET (17:04 GMT)