CPI Property Group

CPI Property Group (“CPIPG”) is a real estate landlord of commercial property focused on the Czech Republic, Berlin, Warsaw and the Central & Eastern European (CEE) region. It was founded in the Czech Republic in 1991.^[1]

The company's headquarters are in Luxembourg, and its shares are listed on the Frankfurt Stock Exchange.^[2]

Radovan Vítek is the founder and majority shareholder of the company, holding approximately 89.29% of CPIPG's voting rights directly and through vehicles controlled by him.^[3] Clerius Properties (affiliate of Apollo Funds) owing 5.58%.^[4]

CPIPG's owned real estate portfolio is valued at €18.6 billion (as at 30 June 2024),^[5] comprising more than 600 commercial properties, over 8,000 international and local tenants, and exposure to multiple geographies and property segments. CPIPG’s portfolio is split as follows: office assets (46% of the total portfolio by value), primarily in central European capital cities such as Berlin (GSG Berlin) Prague, Warsaw, Bucharest and Budapest; retail assets (26%), primarily in the Czech Republic;^[1] residential assets (7%), mainly in the Czech Republic; hotels and resorts (5%); and complementary assets (16%), primarily comprising land bank, development properties and industrial and logistics properties. CPIPG's properties generated over €796 million of net rental income the full year ended 31 December 2023, up 25.9% up from the previous year, net business income rose to €874 million.^[6] As at the end of H1 2024, properties had high occupancy rate of 91.3%.^[7]

In November 2023, CPI Property Group appointed David Greenbaum, CFO of the Group since 2018, to CEO and managing director and was co-opted to CPIPG’s board of directors.^[8][9]

CPIPG's board of directors consists of three independent directors (Edward Hughes, Omar Sattar, and Jonathan Lewis), two non-executive members (Philippe Magistretti, Tim Scoble as Apollo representative) and three  members of management (David Greenbaum, Tomas Salajka, and Oliver Schlink).^[10]

CPIPG has issued more than €8.7 billion (equivalent) of bonds in eight different currencies on the international capital markets.^[11]

History

The company's history dates back to the foundation of Czech Property Investments a.s. (CPI a.s.) in 1991.^[12][13] Throughout the 1990s the company expanded its business abroad through acquisitions in Central Eastern Europe, across multiple real estate segments, including the acquisition of a residential portfolio in the Czech Republic in 2003.^{[citation needed]}

In 2013, CPI a.s. acquired ABLON Group Limited,^[14] which owned a significant property portfolio in the CEE region. In 2014, CPI a.s. combined with Orco Property Group, the majority owner of Orco Germany, which owned a portfolio of office properties in Berlin. Following the company's name change to GSG Group, the company was renamed again to CPI Property Group.^{[citation needed]}

Key historical milestones

• Founded in 1991 as CPI a.s.

• 1999 - Start of residential portfolio acquisitions
• 2002 - Issuance of bonds in the Czech Republic. CPI a.s. moves to the forefront of the most significant Czech real estate investors
• 2003 - Residential portfolio expansion through purchase of residential assets which today comprise CPI BYTY's portfolio
• 2013 - International expansion with the acquisition of ABLON Group, which owned
• a significant property portfolio in the CEE region
• 2014 - Integration of CPI a.s. and GSG and establishment of CPIPG. This step created an extraordinarily strong Luxembourg-based European property group with a diversified portfolio in the Czech Republic, Berlin and the CEE region
• 2016 - Local bond leader with the active issuance in local bond markets to capture strong credit appetite, further enhancing our funding profile
• 2017 - Acquisition of retail portfolio from CBRE Global Investors^[15]
• 2018-2019 - Capital structure transformation - Hybrid bonds, senior unsecured bonds in EUR, CHF, JPY, HKD and USD; inaugural green bond
• 2019-2020 - Office expansion in Warsaw and CEE creating a leading position in Warsaw office market;^[16] acquisition of a 29.6% stake acquired in Globalworth.^[17]
• 2020 - Green bond champion with four green bonds issued in three currencies^[18]
• 2021-2022 - CPIPG revises its environmental strategy and increased ambition for GHG intensity reduction target of 30% (2021) and to 32.4% (2022), which is validated by SBTi.^[19]
• 2022 - A €20 billion+ European market leader, CPIPG’s portfolio is transformed through the acquisitions of controlling stakes of IMMOFINANZ and S IMMO.^[20] That same year, CPIPG issues inaugural Sustainability-Linked Bond.^[21]
• 2022-2024 - Portfolio optimisation and leverage reduction with the disposal of mainly lower-yielding assets with €2 billion target achieved.^[22]
• 2024 – Issued €500 million of bonds in May after a two-year absence from the market; transaction received €3 billion of demand and issued €700 million of bonds in with an orderbook of €4.6 billion in September.^[23]
• Minority equity investment of €250 million by Sona Asset Management for a 49% stake in a subsidiary consisting of 11 office properties in Warsaw and two retail assets in Elbląg and Lublin, Poland.^[24]

References

1. ^ "CPI Property Group 2020 Annual Report". 1 June 2021. Archived 2021-05-08 at the Wayback Machine.
2. ^ "Company Overview of CPI Property Group S.A.". www.bloomberg.com. Retrieved 2019-02-19.
3. ^ "CPI PROPERTY GROUP S.A.". Boerse Frankfurt
4. ^ "Shareholder's corner | CPIPG". cpipg.com. Retrieved 2024-10-29.
5. ^ "Portfolio". CPI Property Group
6. ^ "Financial Results for 2023". CPI Property Group. 29 March 2024. Retrieved 29 October 2024.
7. ^ "Investor Presentation H1 2024 September 2024". cpipg.com. 1 September 2024. Retrieved 29 October 2024.
8. ^ "CPIPG unveils new CEO and changes in senior management". www.property-forum.eu. Retrieved 2024-10-29.
9. ^ "About us | CPIPG". cpipg.com. Retrieved 2024-10-29.
10. ^ "Extraordinary General Meetings of Shareholders held on 16 December 2021". CPI Property Group. 17 December 2021. Archived from the original on 27 January 2022.
11. ^ "CPI Property Group Management Report, 2020". Archived from the original on 2022-01-31. Retrieved 2022-03-16.
12. ^ "CPI - Czech Property Investments, a.s.". www.cpias.cz. Retrieved 2019-02-19.
13. ^ "About us". CPI - Czech Property Investments, a.s.. Retrieved 2019-02-19.
14. ^ "ABLON Group Ltd Company profile". www.bloomberg.com. Retrieved 2019-02-19.
15. ^ "CPI PG acquires €650 million retail portfolio from CBRE GI". www.property-forum.eu. Retrieved 2024-10-29.
16. ^ "CPI Property Group takes over PM of Warsaw office building". www.property-forum.eu. Retrieved 2024-10-29.
17. ^ North, Nathan. "CPI launches Globalworth takeover | EurobuildCEE". eurobuildcee.com. Retrieved 2024-10-29.
18. ^ "CPI Property Group completes green bond issue and tender offers". www.property-forum.eu. Retrieved 2024-10-29.
19. ^ "CPIPG goes greener | EurobuildCEE". eurobuildcee.com. Retrieved 2024-10-29.
20. ^ "CPIPG: "We are focused on the integration of Immofinanz and S Immo"". www.property-forum.eu. Retrieved 2024-10-29.
21. ^ "CPI Property Group issues sustainability-linked bonds". www.property-forum.eu. Retrieved 2024-10-29.
22. ^ "Property Tycoon Vitek Is Trimming €20 Billion Empire to Cut Debt". Bloomberg.com. 2024-04-25. Retrieved 2024-10-29.
23. ^ "CPI follows downgrade with strong bond market return". GlobalCapital. 2024-09-17. Retrieved 2024-10-29.
24. ^ "Dentons advises CPIPG on strategic 250 million equity investment". www.dentons.com. Retrieved 2024-10-29.