CPI Property Group

CPIPG CPI Property Group


We are the largest owner of income-generating real estate in the Czech Republic, Berlin and the CEE region



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Track record of execution in our core regions of the Czech Republic, Berlin and the CEE region
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Property portfolio consisting of high quality, long-term, income generating properties
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of our property portfolio is located in the Czech Republic and Berlin


No. 1
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of our portfolio is in office and retail assets
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Occupancy rate across our portfolio has shown consistent improvement
CPI Property Group is the leading long-term owner of income-generating real estate in the Czech Republic, Berlin and the CEE region. The Group’s headquarters are in Luxembourg and its shares are listed on the Frankfurt Stock Exchange.

CPI Property Group (“CPIPG” or “the Group”) owns and operates a large, diversified and high-quality real estate portfolio valued at €7.9 billion as of September 30, 2019.

The largest sectors of the Group relates to offices (42%, primarily in Prague and Berlin), followed by retail assets (27%, primarily in the Czech Republic). CPIPG also owns hotels and resorts (10%), residential properties (9%), land bank (7%), development properties (2%) and industrial, agricultural and logistics properties (3%).

Over 70 percent of CPIPG’s properties are located in the Czech Republic (51%) and Berlin (26%), with the remaining properties spread across the rest of the CEE region (17%) and to a lesser extent, Western Europe (5%).

The group operates in four key segments where we have market-leading platforms that benefit from scale, experience and active asset management:

Czech Republic – Our history in the Czech Republic dates back to the founding of Czech Property Investments, a.s. in 1991 by the Group's primary shareholder, Radovan Vítek. This is CPIPG's largest market, where our experience and local expertise are unparalleled. We are the #1 office landlord in Prague, the #1 retail landlord and #2 residential landlord in the Czech Republic.

Berlin – Through our subsidiary, Gewerbesiedlungs-Gesellschaft mbH (“GSG”), we are the largest owner of commercial property in Berlin with nearly 1 million m2 of office space.

Hotels & Resorts – CPIPG owns and operates our hotels, which are primarily located in the CEE region.

Complementary Assets – The complementary assets portfolio primarily consists of the Group's platforms in Hungary and Poland. This segment also includes investments in Slovakia, France, Italy, the UK and Romania.

The Group’s strategy is to continue growing its portfolio in the CEE region, with a primary focus on offices in Prague, Berlin, Warsaw and other major cities.

CPIPG has investment grade credit ratings from international rating agencies S&P (BBB), Moody’s (Baa2) and Japan Credit Rating Agency (A-), which have enabled the Group to become a frequent and well-established issuer in the international bond markets since 2017 across multiple currencies and instruments.



Management



Martin Němeček

CEO

Zdeněk Havelka

Executive Director

Tomáš Salajka

Director of Acquisitions, Asset Management & Sales

David Greenbaum

CFO

Pavel Měchura

Group FInance Director

Jan Kratina

Director of CPI Hotels

History

1991

FOUNDATION OF CPIAS

1999-2003

ACQUISITION OF RESI PORTFOLIO

Purchase of residential portfolios that together  make up the current range of 12,500 units  under the brand CPI Byty


2002

ISSUANCE OF FIRST BONDS ON THE CZECH MARKET

The Group moves to the forefront of the most significant Czech real estate investors




2013

EXPANSION ABROAD

Acquisition of investments and development company ABLON Group Limited, which owned a significant property portfolio in CEE


2014

INTEGRATION OF CPI & GSG AND ESTABLISHMENT OF CPI PROPERTY GROUP

This step created an extraordinarily strong European property group with a balanced portfolio



QUADRIO PROJECT COMPLETION

Most significant completed development project of CPIPG 


2016

MAJOR BONDS OPERATIONS

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

The largest acquisition of the Group: a retail portfolio of 11 shopping centres in Czechia, Hungary, Poland and Romania


TOTAL PROPERTY PORTFOLIO BREAKING €6 BILLION

Further expansion in Germany 

Acquisition of high quality commercial assets in Berlin and close to Karlsruhe

RATING AND SENIOR NOTES ISSUES

Baa3 rating by Moody's and issue of inaugural senior unsecured bond of €825m

2018

TOTAL PROPERTY PORTFOLIO BREAKING €7 BILLION

CAPITAL STRUCTURE TRANSFORMATION

Hybrid bonds and senior unsecured bonds in EUR, CHF and JPY used to repay secured / subsidiary debt

POSITIVE RATING DEVELOPMENTS

New BBB rating by S&P, upgrade to Baa2 by Moody's, new A- rating from Japan Credit Rating Agency

 


2019

TOTAL PROPERTY PORTFOLIO APPROACHING €8 BILLION

BERLIN PORTFOLIO EXCEEDS €2BN

CONTINUED CAPITAL STRUCTURE TRANSFORMATION

Inaugural green bond issuance. Unsecured bonds issued in EUR, HKD and USD currencies. Further hybrid issuance and inaugural Schuldschein issuance. New €510m RCF

ACQUISITIONS IN WARSAW, POLAND

Announcement of €800m Warsaw office acquisitions pipeline in October. Over €600m delivered by end of 2019

The CPI Property Group in its current format was established in 2014 by the combination of the Czech CPI Group portfolio (Czech Property Investments) and German GSG Group (formerly Orco Germany). Radovan Vítek, the new majority owner, brought a property portfolio of great value to the group as well as many years of experience in investing in the Central-European property market.

The GSG Group, founded in 2004, was the leading company in the field of commercial property leasing in Berlin, focusing on investments in real estate, development and property management. Thanks to the acquisition of the German company Gewerbesiedlungs-Gesellschaft (GSG), the GSG Group became the biggest owner of office buildings and shopping space in Berlin in 2007. The portfolio reached more than 850,000 thousand m2 of office space. The year 2014 brought the expansion of activities in the field of property management provided to third parties through Wertpunkt Real Estate Experts GmbH.

The CPI Group, namely its mother company Czech Property Investments, was established in 1991 and has since then continued expanding its activities on the Czech, Slovak, Hungarian and Polish markets across all segments – office buildings, shopping centres and retail parks, industrial zones, development projects and land portfolio. Significant activities include important acquisitions that further strengthened portfolio diversification, for example, in the case of rental accommodation, retail buildings and whole development companies, such as Hungarian Ablon. In 2012, the CPI Group released the first public issue of corporate and project bonds, which were very successful and became an additional source of financing. The Group moved, step by step, to the forefront of the most significant Czech real estate investors.

In June 2014, Radovan Vítek, a property investor, incorporated 100% of the Czech CPI Group into the German GSG Group. This step constituted an extraordinarily strong European property group with a balanced portfolio, which includes a wide range of property in the Czech Republic, Germany, Slovakia, Hungary, Poland and Romania. The extraordinary General Meeting held on 28 August 2014 decided to change the name of the merged group from GSG Group to CPI Property Group.

In 2017, the Group completed its historically biggest acquisition, acquiring a retail portfolio of 11 big shopping centres in the Czech Republic, Hungary, Poland and Romania from funds managed by CBRE Global Investors. They include, for example, the shopping centres Olympia in Plzeň, Nisa in Liberec, Ogrody in Polish Elblag and Polus in Budapest. The acquisition also included the Zlatý anděl administrative complex in Prague 5 and two Hungarian Interspar stores.

Since the end of 2017, CPIPG attained strong investment grade ratings from international rating agencies and the Group’s capital structure underwent a significant transformation. Beginning with an inaugural investment grade rating from Moody’s of Baa3 in September 2017 (subsequently upgraded to Baa2 in 2018), this was complemented by a subsequent rating from S&P of BBB and from Japan Credit Rating Agency of A- in 2018. This enabled the Group to become a frequent and well-established issuer on the international bond markets, attracting a diverse and wide investor base. In the past 2 years, CPIPG issued over €4bn of bonds and other instruments in numerous currencies (EUR, USD, JPY, HKD and CHF) and formats (senior unsecured, hybrid, green, schuldschein and private placement), in the process refinancing a significant amount of legacy secured and subsidiary debt. Thanks to this significant capital markets issuance and refinancing activity, CPIPG’s unencumbered assets increased to a record 70% as at 30 September 2019, while liquidity sources stood at €1.4bn and Net LTV was only 33%.

CPI