CPI Property Group, one of the largest owners of income-generating real estate across Central and Eastern Europe (CEE), posted its best ever numbers in 2017. Financial statements for last year were released on March 30.
“The group has gained considerable ground, recording our best financial results ever. We completed large-scale aquistions, made significant loan repayments, reduced our interest costs, and became an investment-grade rated company,” said Martin Nemecek, CEO and member of the CPI board. “CPIPG‘s successful financing strategy, along with targeted efforts by our asset management teams to improve occupancy and rent reaffirmed our status as the dominant owner of real estate in the Czech Republic, Berlin and the CEE region.”
CPI – majority owned by the Czech billionaire Radovan Vitek – boasted assets in 2017 of 7.5 billion euros, an increase of 1.9 billion euros from 2016, driven by targeted acquisitions and thorough asset revaluation primarily in Berlin and the Czech Republic. Total revenues rose 87 million euros to 438 million euros, and EPRA NAV grew 44 per cent to 3.9 billion euros.
Net loan to value (LTV) declined to a record low of 44.9 per cent which CPI’s ratio of secured debt to total debt decreased from 77 per cent to 59 per cent, and its ratio of unencumbered assets to total assets rose from 23 per cent to 43 per cent.
CPI’s biggest acquisition in 2017 was its purchase, for 625 million euros, of 11 shopping centres totalling 265,000 sq m in leased area, all located in core CEE markets: Hungary, Czech Republic, Poland and Romania. CPI bought the malls from two funds managed by CBRE Global Investors.
“The important milestones we achieved in 2017 would never have been possible without strong support from our employees, tenants, banks, bond investors and shareholders,” said Mr Nemecek. “I express genuine thanks for their contributions and count on their partnership for a successful 2018.”
The CPI Property Group ranks among the most significant real estate groups focusing on long-term investments and property leases, especially in Central and Eastern Europe and Germany. Its headquarters are in Luxembourg and its shares are traded on the Frankfurt Stock Exchange.
The group is active in the field of offices, retail, housing, hotels (including the Mamaison Belgicka Hotel in Prague, above), industrial zones, logistic centres and organic farming. It is the biggest retail space owner in the Czech Republic, the second biggest provider of rental housing and one of the biggest hotel owners. The group also has investments in land and owns a diverse portfolio in the Czech Republic, Slovakia, Poland, Hungary, Romania and Germany.
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