After CPI Property Group disposed of part of its stake in the Austrian real estate company Immofinanz at the end of December last year, it is now about to sign another deal, e15 reports.
The subject of the deal is now the Olympic Garden building at Spálená Street 14 in Prague. It is a neo-baroque building of the First Czech Mutual Insurance Company. The transaction should close in the next few days, according to a report to investors. CPIPG will get €38 million for the property, i.e. almost CZK 1 billion. The current owner has not yet announced who the new owner will be. The Olympic Garden building was built between 1907 and 1909 and has many art nouveau elements and the exterior is decorated with a red mosaic with a Czech lion.
In recent years, CPIPG has become one of the largest real estate groups in Europe. At the end of the last decade, the company bought a lot of real estate with cheap money from favourable bond issues. However, its indebtedness jumped to 50.9% at the end of 2022 due to the cooling of the economy and rising rates - measured by the Net LTV indicator (ratio of debts to property valuation). That is why CPIPG is now selling off part of its real estate portfolio.
