CEE investor CPI Property Group is spreading its wings in the Italian property market with the takeover of local real estate investment trust Nova RE.
CPI, which is majority-owned by Czech billionaire real estate investor, Radovan Vitek, has submitted a binding offer for new Nove Re shares to be issued as part of a planned capital increase.
The offer, which was approved by the Nova RE board on 7 October 2020, will see CPI buy the shares at a price of €2.36 per share, for a total consideration of about €26 mln. Following the capital increase, CPI will own more than 50% of Nova RE’s share capital and will launch a mandatory takeover offer for the remaining shares at the same price.
Nova RE owns a number of income-generating properties primarily in Rome, Milan, and Bari valued at €123.3 mln as of 30 June 2020. With debt of €62 mln, the company is one of only five Italian firms to obtain tax-efficient REIT status in Italy.
CPI said that it expects Nova RE will be a platform for the group’s current and future investments in Italy. CPI currently owns €67 mln of assets in the country. Through Nova RE, the firm may consider further investments in Italy where ‘exceptional value can be created’.
‘The acquisition of Nova RE brings strategic efficiencies to CPIPG’s investments in Italy,’ said CPI’s CEO Martin Nemecek. ‘Italy is a small portion of the group’s property portfolio, but we are excited to have a well-managed platform for future growth.’
