CPI Property Group in major CEE real estate deal
pr
CPI Property Group has agreed to buy five commercial properties in Hungary from CBRE Global Investors, CPI told Hungarian news agency MTI today. The purchase is part of the acquisition of a retail portfolio located in the Czech Republic, Hungary, Poland and Romania, which, if completed, may prove the largest real estate deal in the CEE region in 2017.
The properties include the Pólus and Campona shopping centers, and real estate on the upscale avenue of Andrássy út, all in the capital, as well as hypermarkets in Zalaegerszeg and Nyíregyháza, in the west and east of the country, respectively.
The properties were among a total portfolio of 11 acquired by CPI in Hungary, the Czech Republic, Poland, and Romania.
CPIʼs Hungarian unit manages a portfolio of more than 200,000 square meters, valued at some EUR 316 million.
CPI has holdings in ten European countries, with a combined value of more than EUR 4.1 billion.
The completion of the transaction is principally subject to antitrust approval in the Czech Republic and Hungary, according to a press release on the CPI website. The company will file the relevant antitrust applications within the next couple of days, with the closure of the transaction anticipated in the first quarter of 2017.
“This transaction, which might be the region’s largest real estate deal of the year, signifies yet another milestone for CPI Property Group that underscores our ability to deliver exceptional transactions within the current competitive environment,” CPI CEO Martin Němeček was quoted as saying in the press release.
Tomáš Salajka, Director of Acquisitions, Asset Management & Sales, added that the portfolio will more than double the leasable area in shopping centers under CPIʼs management to approximately 430,000 square meters, boosting the total number of shopping centers in its portfolio to 20. “It fully fits into CPI Property
Group’s current strategy, enabling us to extend services to our retail tenants,” he added.
CPI Property Group has been advised by Dentons on the acquisition. Evan Z. Lazar, Co-Chairman of the Dentons Global Real Estate Group - with support from Stewart Middleman and Markéta Tvrda in Prague – represented CPI Property Group in the negotiations. Dentons lawyers based in London, Budapest, Warsaw and Bucharest, including Judit Kővári, Marcell Szőnyi, Monika Sitowicz, Łukasz Zwiercan, Perry Zizzi, Bogdan Papandopol and others, also assisted CPI on the project.
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