CPI Property Group has transferred a portfolio of 53 retail parks to the property company Immofinanz, which it took over last year. The transaction was valued at €324.2 million, but it’s less of a sale than it is part of the reorganization of CPI, following its successful takeover of Immofinanz and S-Immo. Thirty of the parks are located in the Czech Republic, with another 15 in Slovakia and 6 in Poland. CPI described the move as a related party transaction. That’s a reference to its attempts to bring down its group LTV from 44.8%, which it admits is higher than it would like.
CPI helped financed its takeover of Immofinanz and S-Immo through bridge loans, pledging to pay them off by making €2 billion worth of disposals. Originally, the company appears to have assumed it could sell off the needed assets within a year. But in a recent presentation to investors, Tomáš Salajka admitted the current environment make two years a more realistic goal. He said that large-scale transactions are more difficult to achieve these days, but that mid-sized deals of up to €100 million are still possible. CFO David Greenbaum reported that the bridge loans have been extended until 2025, so the group faces no liquidity pressures at the moment.
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