CPI Property Group (CPIPG) has reached agreement on the sale of a portfolio of 11 properties in the Czech Republic to Austrian real estate investor S Immo AG for €481 mln.
The deal was completed by S Immo's SC Czech AHG unit and CPIPG's subsidiary Czech Property Investments.
The price tag is based on an external independent expert's property valuation. The transaction was approved by the Management Board and Supervisory Board of S Immo AG.
The portfolio comprises seven office properties, three commercial properties, and a plot of land with a combined lettable area of 138,000 m2.
The transaction is expected to generate an annual rental income of around €29 mln. After deducting bank liabilities, intra-group liabilities, and commercial deductions, the preliminary consideration is estimated to be €187 mln.
This transaction is classified as a related party transaction since CPIPG indirectly consolidates S Immo AG.
The properties are located in major urban hubs in the Czech Republic and are well-positioned to benefit from the country's strong economic growth. The acquisition is expected to strengthen S Immo's presence in the Czech Republic and expand its portfolio of high-quality office and commercial properties.
The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in Q4 2023.