European real estate landlord CPI Property Group announced this week that it has acquired another 22% stake in Immofinanz, bringing its total stake in the CEE developer-investor to nearly 77%.
CPI said the shares were purchased during the additional acceptance period for CPI’s offer for Immofinanz which expired on 30 May 2022.
‘The consolidation of CPI and Immofinanz creates a group with a new level of size and scale as a landlord,’ said CPI’s CFO David Greenbaum. ‘The group’s acquisitions have been funded conservatively and our capital structure commitment is unchanged.’
The purchase price of €23/share represents a 24% discount versus Immofinanz’s last reported net reinstatement value (NRV) of more than €30/share.
‘CPI is delighted with the outcome of this offer,' said Tomas Salajka, director of acquisitions, asset management & sales. ‘Immofinanz has high-quality assets in our region and the price was attractive.’
CPI will make a second and final drawing of €700 mln under a €2.5 bn bridge loan to fund the offer. CPIPG initially drew the bridge loan for about €1.1 bn in March 2022, but subsequently repaid €644 mln through disposals and capital markets financing.
Therefore, the total bridge balance will be about €1.2 bn following the additional acceptance period.
CPI recently also moved to acquire a controlling stake in S Immo, another central European property firm.
CPI had built up a 16% stake in S Immo since last December and indirectly controls a 26.5% stake in the company through its 55% stake in Immofinanz, another S Immo shareholder (conversely, S Immo owns a 12.69% share in Immofinanz).
CPI is offering €23.50 per S Immo share, which S Immo's management board considers fair. The price represents a 19% discount to S Immo’s most recently reported net tangible assets value of more than €29/share.
