IMMOFINANZ strengthens its leading market position in Europe with the acquisition of a retail portfolio from CPIPG

Deniza Cristian 20/09/2022 | 16:16

As part of its value-creating growth strategy with a focus on high-return properties, IMMOFINANZ is acquiring 53 retail properties in the Czech Republic, Poland, Slovakia and Hungary from its majority shareholder CPI Property Group (CPIPG).

 

The acquired portfolio has roughly 217,000 sqm of rentable space and is fully let with an occupancy rate of 99%. The purchase price totals EUR 324.2 million. The purchase contract was signed today, together with the closing for 36 retail properties in the Czech Republic and Poland which have 108,000 sqm of rentable space. The purchase price of EUR 191 million for those properties was financed from existing funds. The closing for the remaining 17 properties in Hungary and Slovakia is expected to take place by the end of this year.

“This transaction represents an important strategic step to strengthen our resilient, high-return retail portfolio. The acquisition will not only accelerate the expansion of our leading position on the retail park market in Europe and strengthen our STOP SHOP brand, it will also sustainably reinforce IMMOFINANZ’s earning power with stable rental income of roughly 25 million euros per year“, explained Radka Doehring, member of the IMMOFINANZ Executive Board. “Our retail portfolio will now grow to a total of 166 properties in ten countries with over 1.3 million square meters of rentable space.“

Attractive tenant mix and very good accessibility

The acquired portfolio consists primarily of retail parks with an attractive and diverse tenant mix as well as several commercial locations with do-it-yourself and food retailers with very stable revenues and high returns. The properties are located in larger cities or close to large catchment areas and can be easily reached by car and public transportation.

“Considering the scarcity of high-quality portfolios of this size on the market, the completion of this transaction is a very special success. It represents the ideal opportunity to expand IMMOFINANZ’s retail portfolio in a single step and at a lower cost compared to negotiations with multiple sellers“, indicated Stefan Frömmel, Head of Group Transactions at IMMOFINANZ.

Since the CPI Property Group holds roughly 77% of IMMOFINANZ shares, the acquisition is legally classified as a “transaction with related parties“. These types of transactions are subject to high transparency and compliance requirements, and IMMOFINANZ is committed to maintaining the highest corporate governance standards.

Details on the portfolio

The acquired retail portfolio comprises the following:

  • Czech Republic: 30 properties with roughly 89,300 sqm of rentable space and an occupancy rate of 98.7%
  • Slovakia: 15 properties with roughly 76,200 sqm of rentable space and an occupancy rate of 99.9%
  • Poland: 6 properties with roughly 18,200 sqm of rentable space and an occupancy rate of 92.2%
  • Hungary: 2 properties with roughly 33,600 sqm of rentable space and an occupancy rate of 100%
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