CPI PROPERTY GROUP
40, rue de la Vallée
R.C.S. Luxembourg: B 102 254
Luxembourg, 4 February 2020
CPI PROPERTY GROUP - Globalworth Investment and Strategy Update
On 4 February 2020, CPI PROPERTY GROUP ("CPIPG" or the "Group") purchased 3,680,494 shares in Globalworth Real Estate Investments Limited ("Globalworth") through a broker.
As a result of these and earlier purchases, CPIPG now owns a total of 65,250,000 Globalworth shares (29.4% of voting rights) making CPIPG the largest shareholder in Globalworth by a small margin, but still below the mandatory takeover threshold of 30%.
CPIPG does not intend to purchase more shares of Globalworth at this time, considering our existing capital structure and financial policy commitments.
"Globalworth is a superb company and CPIPG is proud to be a major shareholder and strategic investor," said Martin Nemecek, CEO of CPIPG. "We share the strong belief that high-quality offices in major cities of the CEE region will continue to perform well."
Rationale for CPIPG's Investment in Globalworth
CPIPG believes that Globalworth has one of the best office portfolios in Poland and Romania. CPIPG is well-established as a leading owner of offices in Berlin, Prague and Warsaw, with an objective to grow the share of offices in the Group's overall portfolio.
Globalworth and CPIPG have much in common in terms of operations and strategy, and CPIPG has been following the progress of Globalworth for several years. Similar to CPIPG, Globalworth has pursued a conservative investment grade capital structure.
Shares in Globalworth were primarily purchased through a broker on the open market. Following the acquisition of Zakiono Enterprises Limited ("Zakiono") from Ioannis Papalekas on 31 January 2020, CPIPG also gained rights which allow CPIPG to appoint representatives to Globalworth's board and board committees.
CPIPG is supportive of Globalworth's management team and operating strategy. CPIPG understands that Globalworth's successful track record of accessing equity, bond and loan markets is a reflection of the quality of Globalworth's portfolio, people and governance practices.
Impact on CPIPG's Financial Policy
CPIPG's financial policy includes an LTV limit of 40%, or up to 45% in the case of acquisitions with "high strategic merit." The Group's LTV was 32.9% at the end of Q3 2019. Pro-forma for the acquisition of a 29.4% stake in Globalworth and considering CPIPG's acquisition pipeline for H1 2020, the Group's LTV might peak slightly above 40% but well below 45% for a short period of time.
CPIPG believes that the acquisition of our stake in Globalworth meets the definition of "high strategic merit," and brings to CPIPG the kind of enhancements in scale, sector exposure and rental income that our key credit-focused stakeholders should view favourably.
Going forward, CPIPG will consider tools to proactively manage the Group's leverage profile in order to maintain our commitment to financial policies and rating objectives. CPIPG has significant cash available from recent green bond and hybrid financings, plus an undrawn EUR 510m revolving credit facility maturing in 2022.
CPIPG's 2019 Financial Calendar
CPIPG expects to release preliminary 2019 financial results on 17 February, followed by the full publication of 2019 annual results on 31 March. An investor webcast will be scheduled for early April.
Financial calendar - Key Dates for 2020
Publication of 2019 annual results - 31 March 2020
Annual general meeting - 28 May 2020
Publication of 2020 first quarter results - 29 May 2020
Publication of 2020 half year results - 31 August 2020
Publication of 2020 third quarter results - 30 November 2020
Publication of 2020 annual results - 31 March 2021
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For more on CPI PROPERTY GROUP, visit our website: www.cpipg.com
For further information please contact:
CPI PROPERTY GROUP
Chief Financial Officer
CPI PROPERTY GROUP
Director of Capital Markets
Kirchhoff Consult AG
T +49 40 60 91 86 50
F +49 40 60 91 86 60
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