CPI Property Plans to Open Czech Portfolio to Retail Investors

Landlord CPI Property Group is planning to sell shares in its Czech residential portfolio through an open-ended fund to retail investors as it seeks to rein in debt. 

CPI has started preparatory work for establishing the fund and intends to sell around 10% of its CPI Byty portfolio in the first phase, according to third-quarter results published late Friday. Retail investors will be able to buy tradeable share certificates issued by the fund.

The group “expects to gradually reduce our ownership in CPI Byty through the regular sale of fund shares,” CPI said in the statement. It is the second-largest residential landlord in the Czech Republic, comprising about 11,600 units in 14 cities. 

The plans come amid CPI’s efforts to sell swathes of its properties to reduce borrowing. Like many landlords, CPI has been grappling with falling property valuations after a debt-fueled acquisition spree when rates were low. 

The landlord, whose portfolio also spans countries including Germany, Austria and Poland, said it is targeting disposals of more than €1 billion in 2025 and at least €500 million annually thereafter. 

CPI is working with advisors including KPMG Advisory and law firms Clifford Chance, Wolf Theiss and Dentons to “optimize the capital and corporate structure,” it said. The real estate company has been looking to simplify after its string of acquisitions. 

As part of those simplification efforts, CPI is no longer considering a “fast squeeze-out” of its subsidiary Immofinanz or a merger of Immofinanz into the group, it said. CPI’s plans for its subsidiary, in which it holds a 75% stake, have been the subject of speculation by equity investors.