Czech CPI buys huge Central European retail portfolio

By bne IntelliNews January 17, 2017

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17.

The investor, which has grown its holdings rapidly since the crisis, is one of a new breed of local players making their mark on the Visegrad market since the crisis. Many foreign investors that dominated ahead of 2008 have been forced to retreat.

The local funds were swift to snap up assets from those struggling foreign groups at bargain prices, offering huge profit as yields have compressed back to previous levels. With yields falling back to 5-6% on trophy assets in Prague and Warsaw, the likes of CPI have continued to expand.

The latest deal sees the investor – controlled by Czech billionaire Radovan Vitek - buy 11 large shopping centers in the Czech Republic, Hungary, Poland and Romania. The acquisition is the largest ever by CPI.

The sellers were real estate funds managed by CBRE Global Investors, writes CTK. The price of the deal has not been officially announced. However, the local edition of Forbes reports it at €650mn.

CPI has recently sold off regional office assets in a bid to concentrate on larger cities. However, it has been quiet in recent months as it has balked at the rise of prices on Central European markets.

The investor says that the deal was opportunist. "This transaction, which may be in our region for this year the biggest ever, marks another milestone for CPI Property Group and shows that we can do exceptional business and in today's very competitive market," said CEO Martin Nemecek.

The deal, which hands CPI 265,000 square metres of shopping centre and office space and projects in major cities around the four countries, needs to be approved by the Czech and Hungarian competition offices.

 

Related Articles

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Poland struggles in bid to oust Tusk

The Polish government spent March 6 canvassing for support for its alternative candidate for the European Council presidency to compatriot Donald Tusk. However, it met little success, even in its own ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss