DGAP-News

CPI PROPERTY GROUP: 2014 financial result - Seite 2

Meeting: Ian Cash, Philippe Magistretti, and Oliver Schlink. Ian Cash
resigned from the Board as of 14 August 2014.

In July 2014, the Board of Directors implement further changes in the
management of the Group, notably integrating top managers of CPI and the
Company into one management team, with the effective date as of 1 August
2014. Martin Němeček remains in the position of CEO. TomáÅ  Salajka
previously Deputy CEO became Director of Asset Management and Sales. Mr.
Zdeněk Havelka has been appointed Executive Director.

Our new investments and portfolio news

Acquisition of Mamaison hospitality business

On 24 April 2014 the Company acquired a 50% share in Hospitality Invest
S.a.r.l. ("HI") at a price of EUR 8.5 million representing a 10% discount
to the acquired net asset value as of 31 December 2013. The transaction was
a direct step of the Company into a joint-venture hospitality business
within the CEE region with the continuing 50% joint-venture partner being
ORCO PROPERTY GROUP ("OPG").

On 19 December 2014 the Company acquired 88% shares in entities holding the
remaining 50% shares in HI from OPG. The transaction comprised of transfer
of shares as well as of intercompany loans at current fair value (NAV). The
overall transaction price amounted to EUR 13.3 million.

As such, the Company directly and indirectly holds 94% of HI as of 31
December 2014. The acquired portfolio represents a unique collection of 12
well-established luxury boutique hotels and all-suite residence hotels
under Mamaison brand, mostly located in prime central locations of the CEE
capitals and Moscow.

Entering new agriculture business

On 2 October 2014 the Company contracted an acquisition of 100% shares of
Spojené farmy ("Farmy") for a transaction price of EUR 43.5 million. The
seller of Farmy was a larger group of private individuals. The transaction
was completed on 1 November 2014, following the approval by the
anti-monopoly authority.

Farmy is one of the largest owners of farmland and producer of high-quality
organic food in the Czech Republic, which operates almost 20,000 hectares
of land. It produces high-quality organic beef, chicken and lamb with
various certifications (kosher, halal and bio) and supplies international
retail chains, restaurants, hotels and independent retailers in the EU. The
expansion into agricultural business was an important move for the Group,