Vienna-based CEE-focused property investor S Immo has agreed to acquire a portfolio of eight mixed use properties in the Czech Republic from Czech Property Investments, a subsidiary of CPI Property Group, for a property value of €463 mln.
The purchase comprises four office properties and four commercial properties with a total leasable area of around 136,000 m2 and an annual rental income of around €28.3 mln.
In a statement, 'S Immo said that the purchase price will be €176 mln after the deduction of financial liabilities of €236 mln, other balance sheet adjustments for €10.5 mln and commercial deductions of €40.5 mln. The company is financing the acquisition with a €76 mln loan provided by the vendor.
In February 'S Immo announced that it had signed a non-binding letter of intent with CPI Property Group to acquire a mixed property portfolio in the Czech Republic.
A company spokesperson for 'S Immo said that the purchase is 'in line with 'S Immo's strategy of disposing of properties with lower yields - above all in Germany and Austria - and acquiring high-yielding properties instead, above all in Eastern Europe'.
CPI Property Group holds 88.37% of the share capital of S Immo, whereby 50% plus one share is held indirectly via its ownership in Immofinanz.
It would be the second major acquisition from CPI in the Czech Republic in just a few months. In November last year 'S Immo reached an agreement with CPI to buy 11 properties in the country for €481 mln.
