ARTICLES LABELLED WITH TAG S Immo

Immofinanz Group recorded strong growth in both rental income and operating results for the first quarter of 2023, which was supported primarily by the full consolidation of S Immo and by property acquisitions. Rental income rose by roughly 83% to €128.4 million. The results of operations and sustainable FFO 1 from the standing investment business more than doubled to €82.5 million and €72.5 million, respectively.

CPI Property Group and S Immo have signed and completed an agreement regarding the sale and purchase of a property portfolio in the Czech Republic.

In the year 2022, CPI Property Group became one of Europe's largest landlords. The CPIPG portfolio reached €20.9 billion, about €7.8 billion more than the year before due to several consolidations. Consolidated adjusted EBITDA was €608 million, while FFO1 was €355 million.

Immofinanz Group delivered very good operating performance in 2022 in spite of the challenging environment. Sustainable FFO 1 from the standing investment business rose by 21.7%. Rental income increased by 5.4% to €300.2 million and the results of asset management by 7.2% to €226.1 million. The Group also has a very solid capital base with an equity ratio of 47.9% and conservative debt with a net LTV of 40.7%.

Property groups Immofinanz and S Immo said they are reviewing further alignment, coordination, merger or other forms of integration, with CPI Property Group (CPIPG) as supporting shareholder. 

Immofinanz has significantly expanded its retail portfolio in the 2022 financial year. As a result of acquisitions and completions, the portfolio has grown from 111 to 169 locations in ten European countries over the course of the year, with a carrying amount of approximately €2.3 billion (excluding S Immo). Rentable space increased by nearly 30% to approximately 1.36 million sqm.

Immofinanz is acquiring 17,305,012 shares in S Immo AG from its core shareholder, CPI Property Group, thus obtaining a controlling stake in S Immo of 50% plus one share. The purchase price amounts to €337.5 million or €19.5 per S Immo share. The transaction will be financed through a long-term credit facility provided to Immofinanz by CPIPG. The share purchase agreement was signed on 19 December 2022. The closing of the transaction will take place before the end of 2022. Consequently, Immofinanz will fully consolidate S Immo in the 2022 annual financial statements.

Immofinanz has received approval from its Supervisory Board to enter into negotiations with its core shareholder CPI Property Group concerning the acquisition of shares in S Immo. Currently, Immofinanz directly holds approx. 26.49% of S Immo. CPIPG directly holds 52.7% of S Immo, which may further increase as a result of CPIPG’s mandatory takeover offer over S Immo.

The sale comprises eight properties totalling around 109,000 sqm of lettable space with an annual rental income of approximately €16 million, plus one plot of land. 

Immofinanz has signed a letter of intent for the sale of its Hungarian office properties to S Immo. This transaction is taking place through close cooperation within the CPI Property Group to realise synergy effects and can be used to extend Immofinanz’s myhive office solutions to the entire group. The Hungarian portfolio includes six buildings in Budapest with roughly 124,000 sqm of rentable space. The closing of the transaction could take place before the end of 2022.