'S Immo, a Vienna-based listed property firm focused on CEE, said this week that it has signed a non-binding letter of intent with CPI Property Group to acquire a €495 mln mixed property portfolio in the Czech Republic.
The portfolio consists of office and retail buildings with a gross lettable area of around 134,600 m2 and an overall total net asset value of approximately €49 mln. The annual rental income adds up to around €28 mln.
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.
The portfolio comprises seven office properties, three commercial properties, and a plot of land with a combined lettable area of 138,000 m2, with an annual rental income of around €29 mln.
