CPI PROPERTY GROUP – Update on Disposals

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, 28 February 2024

CPI PROPERTY GROUP – Update on Disposals

CPI PROPERTY GROUP (“CPIPG” or the “Group”) is pleased to provide our stakeholders with an update on the Group’s disposal programme. 

Sale of Assets to Third Parties

Today, CPIPG completed the sale of Metrogate House, a student accommodation property located in South Kensington, London, to a local investor. Last week, CPIPG completed the disposal of Concept Tower, an office building located in Warsaw’s inner Wola district, to WOOD & Company Real Estate Fund. Earlier in February, IMMOFINANZ AG sold the Grand Center Zagreb office property to a local real estate investor in Croatia.

Gross proceeds from the three disposals were nearly €80 million. On average, sales took place at prices which are similar to the June 2023 book value.

Letter of intent with S IMMO

Yesterday, CPIPG signed a non-binding letter of intent (LOI) with S IMMO AG regarding the sale of a portfolio of office and retail properties located in the Czech Republic. The total asset value of the transaction is about €495 million. This qualifies as a related party transaction as CPIPG indirectly consolidates S IMMO AG.

Use of proceeds

Cash received by CPIPG from disposals will be used to repay debt. The Group remains committed to repaying short-term debt well in advance of maturity, and continues to aim for the full repayment of the Group’s bridge financing (due October 2026) before the end of June 2024.

For further information, please contact:

Investor Relations

Moritz Mayer
m.mayer@cpipg.com

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