CPI Property Group - Comment

The bank debt is moving with the assets (we estimate bank debt LTV of c25%). The deal involved just under €900m of assets moving from CPI Property to the CPI Europe subsidiary, with €300m in cash paid to CPI Property and a €300m note issued by CPI Europe. Assuming that minorities and tax liabilities are around 10% of the total price, then bank debt on the assets is around 25% (€225m). The sale of the Czech Resi assets was announced in August, so the closure announcement was not a surprise. The terms/maturity of the note issued by CPI Europe are not public so far.

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