Asset manager Apollo is investing €300m to buy a 5.5% stake in CPI Property Group (CPIPG), owner of an €11bn central European real estate portfolio.
Apollo, via its funds, is acquiring CPIPG shares at €0.616 each for its stake. CPIPG’s majority shareholder and founder Radovan Vitek owns 93.90% of CPIPG’s share capital.
Once the issuance of new ordinary shares to the Apollo funds is completed, CPIPG will have raised €550m of equity from Vitek and the Apollo funds during the second half of the year.
CPIPG said the investment by the Apollo funds diversifies and strengthens the real estate firm’s access to external sources of equity and “underscores the company’s commitment to corporate governance”.
David Greenbaum, the CFO of CPI Property Group, said the proceeds from the ordinary share issuances will be used for acquisitions and deleveraging.
“We see an opportunity to continue growing our portfolio while maintaining a conservative financial profile.”
CPIPG’s portfolio comprises office properties (52%, primarily Berlin, Prague, Warsaw and Budapest), retail assets (22%, primarily dominant, regional shopping centres and retail parks in the Czech Republic, as well as Poland and Hungary). The group also owns hotels and resorts (7%), residential properties (9%), land bank (8%), development, industrial, agricultural and logistics properties (3%).
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