CPI Property Group has completed the sale of a few assets across Europe to third parties.
First, the Metrogate House, a student accommodation property located in South Kensington, London, has been sold to a local investor. Last week, CPIPG also completed the disposal of Concept Tower, an office building located in Warsaw’s inner Wola district, to WOOD & Company Real Estate Fund. And then earlier in February 2024, IMMOFINANZ AG sold the Grand Center Zagreb office property to a local real estate investor in Croatia.
Gross proceeds from these three disposals were nearly €80 million. On average, sales took place at prices which are similar to the June 2023 book value.
Finally, this week CPIPG has 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.
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.
