News Article CPIPG Czech Republic IMMOFINANZ AG report
by Property Forum | Report

CPIPG has announced the Group’s strategic initiatives including group simplification, financing updates and governance review.

IMMOFINANZ AG announced the commencement of preparations for a squeeze-out of S IMMO AG. Together with CPIPG, IMMOFINANZ holds a stake of approximately 88.37% in the share capital of S IMMO (taking into account the treasury shares of S IMMO, the effective stake in S IMMO amounts to approximately 92.54%). The intended squeeze-out is the Group’s first step towards reducing complexity. The company plans to further review the structure of the Group in the coming months.

At the beginning of May 2024, CPIPG issued new €500 million of 5-year senior unsecured green bonds which received high demand resulting in a six-times oversubscribed orderbook. Proceeds from the bond issuance were used to fully repay the remaining €460 million of bridge loans. With that, CPIPG completed the repayment of around €2.7 billion in acquisition financing since 2022 as part of IMMOFINANZ and S IMMO acquisitions. With the bridge repayment, the Group’s fixed-rate debt ratio increased to over 90%.

In 2023, CPIPG engaged the global law firm White & Case to review the Group’s governance procedures, compliance policies and procedures, and related matters, with a focus on related party transactions and policies. The final report is expected this summer. CPIPG has already received preliminary suggestions on further governance strengthening and expects to describe any new procedures during the summer.