Dentons Advises CPI Property Group on 1 Billion Real Estate Portfolio Sale

Dentons, a global law firm, has successfully advised CPI Property Group (CPIPG) and its subsidiaries, CPI FIM SA and Czech Property Investments, on a significant partnership agreement. The transaction saw CPIPG sell a 49% common equity stake in CPI Project Invest and Finance (CPI PIF) to funds managed by Sona Asset Management for 250 million. This deal marks a major step in CPIPG's strategy to reduce leverage.

Key Takeaways:

CPIPG sold a 49% common equity stake in CPI PIF, a company holding a portfolio of office and retail assets in Poland, to funds managed by Sona Asset Management for 250 million.
CPI PIF owns a portfolio of 11 office properties in Warsaw and two retail assets in Elblg and Lublin, Poland, with a gross asset value of approximately 1 billion.
The transaction is part of CPIPG's broader asset disposal pipeline initiated in 2022, which has seen the group sign over 2.3 billion of sales at average prices close to book value.
Martin Matula, General Counsel of CPIPG, praised Dentons' guidance and advice, stating that "this was a strategic transaction for CPIPG" and that "we are pleased to add this transaction to CPIPG's list of mutual success stories with Dentons."
Counsel Kamran Pirani and Partner Rob Irving led the Dentons legal team, supported by a multijurisdictional and multi-competency team advising on corporate, M&A, real estate, financing, and tax aspects of the transaction.

Statistics:

The transaction value is 250 million.
The gross asset value of CPI PIF's portfolio is approximately 1 billion.
CPIPG's asset disposal pipeline has seen the group sign over 2.3 billion of sales at average prices close to book value.
11 office properties and 2 retail assets are included in CPI PIF's portfolio.
Funding and closing occurred on 27 June 2024.

Sources:

"Dentons Advises CPI Property Group on 1 Billion Real Estate Portfolio Sale" from Global Data Point (2022)