DGAP-News: CPI PROPERTY GROUP

Press Release

Luxembourg, 1 September 2017^[1]

CPI PROPERTY GROUP - on the verge of becoming a dominant real estate player on CEE market

Corporate news

ANNUAL GENERAL MEETING OF SHAREHOLDERS

The annual general meeting of the shareholders of CPI PROPERTY GROUP (the "Company" and together with its subsidiaries as the "Group") was held on 24 May 2017 in Luxembourg (the "Annual Meeting"), with approximately 70.68% of the voting rights present or represented.

The Annual Meeting approved the statutory annual accounts and consolidated annual accounts for the financial year ending 31 December 2016, as well as the allocation of financial results for the financial year ending 31 December 2016. The Annual Meeting further granted a discharge to the members of the Company's Board of Directors as well as to the auditors for the performance of their duties during the financial year ending 31 December 2016. The Annual Meeting also resolved to appoint the following persons as members of the Company's Board of Directors as of the date of the Annual Meeting and until the annual general meeting of 2018 concerning the approval of the annual accounts for the financial year ending 31 December 2017: Edward Hughes, Philippe Magistretti, Martin Nemecek, Tomas Salajka, Oliver Schlink, Radovan Vitek and Marie Vitkova. Martin Nemecek was also elected Managing Director (administrateur délégué) of the Company. The Annual Meeting finally resolved to appoint KPMG Luxembourg as an auditor (réviseur d'entreprises agréé) of the Company until the annual general meeting of 2018 concerning the approval of the annual accounts for the financial year ending 31 December 2017.

EUR 51.5 MILLION NEW SHARES

The Company issued of 515 000 000 new ordinary shares for a global cash contribution of EUR 51.5 million. The new shares were subscribed by the current shareholder RAVENTO S.a r.l., an entity closely associated with Mr. Radovan Vítek. The new shares, having a par value and a subscription price of EUR 0.10 each, were issued in a reserved capital increase under the Company's authorized share capital and fully paid by cash. The corporate share capital of the Company has thus been increased from EUR 779 561 784.60 represented by 7 795 617 846 shares to EUR 831 061 784.60 represented by 8 310 617 846 shares. The total number of shares comprising the share capital of the Company is 8 310 617 846 as of 30 June 2017.

Portfolio highlights

THE GROUP BOOSTS ITS RETAIL PORTFOLIO

The Group acquired the high-quality retail portfolio of predominantly 11 shopping centres located in Czechia, Hungary, Poland and Romania with a total leasable area of approximately 280,000 sqm. The closing of this historic deal for the Group was completed on 29 March, 2017. The acquired portfolio consists of (i) major shopping centres Olympia Plzeň and Nisa Liberec in Czechia, Ogrody in Poland, Polus and Campona in Hungary and Felicia in Romania; (ii) multifunctional complexes Zlatý Anděl in Prague and Andrássy Complex in Budapest; and (iii) two Interspar stores in Hungary. The acquisition price reached EUR 625 million. The bank financing has been arranged through several loans at a total of EUR 440 million, with the Group providing the remaining amount from its own funds.

ACQUISITION OF THE SHOPPING CENTRE IN BRNO

On 26 July 2017, the Group acquired Královo Pole Shopping Centre located in Brno, Czechia. Shopping Centre was built in 2004 by Carrefour and comprises a two-level gallery with 78 shops and a food court with a total of 26,500 sqm GLA and 900 parking spaces. The hypermarket was originally anchored by Carrefour until 2007, when it was taken over by Tesco. Královo Pole is the dominant shopping centre in the northern Brno featuring a large catchment of 250,000 inhabitants within 20 minutes with above average purchasing power. The shopping centre offers development potential having a valid building permit in place for a further 12,000 sqm GLA expansion.

ACQUISITION OF THE HOTEL VLADIMÍR

On 7 March 2017, the Group acquired Hotel Vladimír in Ústí nad Labem. Hotel Vladimír is a 3 star hotel with 86 rooms. The operation of this hotel will be secured by CPI Hotels a.s., operator of the majority of the Group's hotels portfolio.

SALE OF ARKÁDY PROSTĚJOV SHOPPING GALLERY

On 8 August 2017, the Group disposed of Arkády Prostějov shopping gallery. The shopping gallery, with the gross leasable area of approximately 10,000 sqm, is located in Prostějov, eastern part of Czechia. The Group decided to proceed with this disposal, since it considered Arkády Prostějov as a non-core asset.

SALE OF OFFICE BUILDING IN CAPELLEN

The Group disposed of the office building in Capellen, Luxembourg. The building with a leasable area of approximately 7,700 sqm, located in the Capellen business park just outside of the City of Luxembourg, was sold to a private investor. The transaction, structured as a share deal, was completed on 25 January 2017.

SALE OF LOZORNO LOGISTIC PARK

In February 2017, the Group disposed of Lozorno logistics park, located outside of Bratislava, Slovakia. The logistics park, comprising of 5 halls with total rentable space reaching 118,000 sqm, was sold in a share deal transaction.

SALE OF OFFICE POPERTY IN BRNO

In March 2017, the Group disposed of the Purkyňova office building located in Brno, Czech Republic. The modern building with an area exceeding 11,300 sqm was sold in a share deal transaction.

Capital market financing

CZK 800 MILLION BONDS REPAID AND NEWLY ISSUED

On 5 May 2017, two maturing tranches of Group subsidiary CPI BYTY, a.s. bonds amounting to CZK 300 million and CZK 500 million, were repaid from equity. On 10 May 2017 CPI BYTY, a.s. issued the seventh and eighth tranche of secured bonds. The seventh tranche, registered under ISIN code CZ0003516551, amounts to CZK 530 million, carries a fixed coupon of 1.85% and matures on 10 May 2019. The eighth tranche, registered under ISIN code CZ0003516569, amounts to CZK 270 million, carries a fixed coupon of 2.25% and matures on 7 May 2019. The prospectus, which was approved by the Czech National Bank on 3 May 2017 is available in electronic form at www.cpibyty.cz.

EUR 55 MILLION BONDS ISSUE

The Group issued additional EUR 55 million bonds with the nominal amount of EUR 1,000 each with maturity in 2022. The bonds are registered under ISIN code SK4120012097 and carry a fixed rate coupon of 5.00% p.a. The prospectus, approved by the National Bank of Slovakia on 28 September 2016 is available in electronic form at www.cpifinanceslovakiaii.sk.

For full Interim Management Report as of 30 June 2017, including Condensed Consolidated Interim Financial Statements as at 30 June 2017 please refer to our website at www.cpipg.com.

^[1] This is the erratum to the press release published by the Company on 31 August 2017. This corrected press release is issued due to a typo with respect to the information of 31 August 2017 about the Consolidated Leverage Ratio and the Secured Consolidated Leverage Ratio. This press release replaces the 31 August 2017 press release, which shall be disregarded.

 

For further information please contact:

Kirchhoff Consult AG
Andrew Stammler
Herrengraben 1
20459 Hamburg
T +49 40 60 91 86 18
F +49 40 60 91 86 60
E andrew.stammler@kirchhoff.de