EQS-News

CORRECTION: CPI PROPERTY GROUP – Update on disposals, financing and distributions

EQS-News: CPI PROPERTY GROUP / Key word(s): Miscellaneous CORRECTION: CPI PROPERTY GROUP – Update on disposals, financing and distributions 09.11.2022 / 12:58 CET/CEST 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 – Corporate News

Luxembourg, 9 November 2022

CORRECTION: CPI PROPERTY GROUP – Update on disposals, financing and distributions

CPI PROPERTY GROUP (hereinafter “CPIPG”, the “Company” or together with its subsidiaries the “Group”) has prepared an update for our stakeholders regarding the Group’s disposals, financing and distributions.

Disposal Strategy

Executing disposals to reduce leverage is a top priority for CPIPG in the coming 12 to 24 months, in line with the Group’s financial policy commitments. At the end of August 2022, CPIPG announced a disposal pipeline exceeding €2 billion, with more than 30 potential sales in various stages of execution across office, retail, hotels, residential sectors, and landbank. Despite a volatile global market backdrop, the Group continues to see good appetite for high-quality real estate from a broad range of investors.

The Group’s disposal strategy focuses on low-yielding mature assets, single-tenant properties, assets that can achieve attractive sale prices and non-strategic assets outside of the Group’s core markets. Sector and geographic diversification, along with a high degree of granularity (pipeline disposals range from €10 million to more than €200 million), is a significant advantage for the Group.

Since the Group’s announcement at the end of August, CPIPG has made significant progress on the disposal pipeline, closing sales with gross proceeds exceeding €300 million.

Notable recent disposals by the Group

In September 2022, IMMOFINANZ closed the disposal of an office building in Prague, BBC Gamma, to Passerinvest Group, a local real estate investor and developer. The building has roughly 31,000m² and is rented in full to a single tenant through a long-term lease. The transaction was concluded at a premium to the book value as of 30 June 2022.