News Article Aareal Bank Barclays CPIPG Czech republic Dentons investment KingsRock Advisors Prague Société Générale Sona Asset Vulcanion
by Property Forum | Investment

CPIPG has announced further progress in the Group’s strategy to reduce leverage. CPIPG and its subsidiaries, CPI FIM SA and Czech Property Investments have signed a partnership agreement through which CPIPG is going to sell a 49% common equity stake in Vulcanion for €250 million to funds managed by Sona Asset Management.

Vulcanion owns eleven office properties in Warsaw and two retail assets in Elbląg and Lublin, Poland. The portfolio’s gross asset value is about €1 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 its asset disposal pipeline in 2022, it has signed more than €2.3 billion of sales at average prices close to book value. CPIPG sees this minority stake sale as a strategic beneficial step for its capital structure. CPIPG also retains the ability to repurchase the minority equity stake from Sona. CPIPG was advised on structuring and ratings matters by Barclays, Société Générale and KingsRock Advisors. Dentons served as CPIPG’s legal advisor.