CPI Property Group Announces Equity Investment Update in Poland

CPI Property Group (CPIPG) has announced significant progress in its strategy to reduce leverage. The group, together with subsidiaries CPI FIM SA and Czech Property Investments, a.s., has signed a partnership agreement to sell a 49% equity stake in Vulcanion, a.s. for €250 million to funds managed by Sona Asset Management. Vulcanion owns eleven office properties in Warsaw and two retail assets in Elbląg and Lublin, Poland. The portfolio’s gross asset value is around €1 billion. Three of the office properties will remain encumbered by a green loan from Aareal Bank, maturing in 2028.

Following the sale, CPIPG will retain operational control and consolidate Vulcanion. The transaction is expected to reduce the Group’s Net LTV by approximately 1.3%. Funding and closing are anticipated by the end of June. Since 2022, CPIPG has signed over €2.3 billion in sales at average prices close to book value. The minority stake sale is viewed as a strategic move to enhance the Group’s capital structure. CPIPG also retains the option to repurchase the equity stake from Sona.

David Greenbaum, CEO, highlighted the partnership with Sona as indicative of CPIPG’s asset quality and its ability to attract strong capital partners.