DGAP-News

CPI PROPERTY GROUP - Update on the Second Wave of COVID-19

DGAP-News: CPI PROPERTY GROUP / Key word(s): Miscellaneous CPI PROPERTY GROUP - Update on the Second Wave of COVID-19 26.10.2020 / 08:55 The issuer is solely responsible for the content of this announcement. CPI PROPERTY GROUP (société anonyme) 40, rue de la Vallée L-2661 Luxembourg R.C.S. Luxembourg: B 102 254 PRESS RELEASE Luxembourg, 26 October 2020 CPI PROPERTY GROUP - Update on the Second Wave of COVID-19

CPI PROPERTY GROUP ("CPIPG" or the "Group") has prepared an update for our stakeholders following the recent surge in COVID-19 cases and the reintroduction of government restrictions across Europe.

"CPIPG gained tremendous experience from the initial outbreak of COVID-19 and took many steps to prepare our business and capital structure for a second wave," said Martin Nemecek, CEO. "Our local teams are already engaged with tenants to minimize the impact of any new restrictions."

Recent COVID-19 Measures
On 21 October 2020, the government of the Czech Republic ordered all non-essential shops to close. Essential retailers such as grocers, pharmacies, pet stores, flower shops and news agents are open, representing about 42% of CPIPG's Czech retail portfolio by gross leasable area (GLA). The new restrictions are in place until 3 November 2020 but may be extended.

In conjunction with the new restrictions, the Czech government has announced support for retail tenants affected by the closures in the form of a subsidy covering 1.5 months of rent. While the new support package resembles the highly effective measures enacted during H1 2020, in the latest version landlords are not required to provide discounts as a precondition to the government subsidies.

Occupancy in CPIPG's Czech retail portfolio was 97% as of H1 2020. The Group continues to work with tenants to preserve a high level of occupancy and an optimal shopping experience across our Czech shopping centres and retail parks. Recent data has proven that Czech shoppers respond swiftly when government restrictions are eased: while hygiene measures and social distancing resulted in slightly lower footfall in Q3 relative to 2019, tenant sales rebounded to 2019 levels.