CPI Property Group (CPIPG), alongside its subsidiaries CPI FIM and Czech Property Investments, will sell a 49% stake in Vulcanion, a holding company that owns office and retail properties in Poland.
The €250 mln sale price aligns with the current market value for comparable office and diversified real estate companies listed on public exchanges.
The buyer is institutional investor Sona Asset Management (UK). Notably, CPIPG retains the right to repurchase the minority equity stake from Sona in the future.
Vulcanion's portfolio comprises eleven office properties in Warsaw and two retail assets in Elblag and Lublin. The total value of the properties is roughly €1 bn, with three office buildings still under a green loan from Aareal Bank that matures in 2028.
CPIPG CEO David Greenbaum said: ‘CPIPG is excited about our partnership with Sona. This investment demonstrates the quality of our operations and assets in Poland and the Group’s ability to attract strong capital partners.’
CPIPG will retain full control of Vulcanion's operations and will continue to consolidate the company in its financial statements. On a pro-forma basis, this transaction is expected to reduce the company's net loan-to-value ratio by roughly 1.3%. The deal is expected to be finalized and funded by the end of June.
The divestment aligns with CPIPG’s plan, announced in 2022, to lower its debt burden. The strategy has so far yielded over €2.3 bn in sales.
CPIPG was advised by Barclays, Société Générale, KingsRock Advisors, and Dentons.
