CPI Property Group

MARTIN NĔMEČEK

A real estate professional with over 20 years of experience in both legal and executive functions. He joined CPI in 2011 and was responsible for the Group’s acquisitions and international expansion. In 2014, he was appointed the CEO and joined the Board of Directors as the Managing Director. He is responsible for CPI corporate strategy, international transactions, business development, and legal matters. During his career, he has completed acquisitions with a total value exceeding €15 billion.

The enlarged, high-quality and well-diversified portfolio continues to be concentrated in CPIPG's leading locations in Europe – Berlin, Prague and Warsaw, where it is the segment leader. CPIPG also gained market share in the Austrian (Vienna), Romanian (Bucharest) and Hungarian (Budapest) markets. In the retail segment, thanks to the acquisition of IMMOFINANZ shares, the Group is now the undisputed leader in the Czech market, with all types of large-format retail outlets. The Group has also gained platforms in Central and Eastern Europe - in Poland, Romania, Slovakia, the Adriatic countries and Italy.

The Group operates in 5 segments: Office, Retail, Residential, Hotels & Resorts and Complementary Assets. In each segment, CPIPG has market-leading platforms that benefit from scale, active local asset management and a long track record. The two main operating segments are Office and Retail. Office properties account for 49% of the Group's portfolio, and in the Czech Republic, Berlin and Warsaw, CPIPG is the market leader in terms of GLA held. Retail accounts for 24% of the portfolio value. CPIPG is the unquestioned market leader in the Czech Republic, with all types of large-format stores. It addition, it owns regional shopping centers and retail parks in CEE and Western Europe. The Residential segment accounts for 14% of the portfolio value. CPIPG is #2 in the Czech residential market. It also has platforms in the UK and Western Europe. Hotels & Resorts account for 5% of the portfolio (#1 congress & convention hotel owner in the Czech Republic) and Complementary accounts for 14%.

The office segment accounts for 49% of CPIPG's total office portfolio. After the merger, the portfolio grew by 44 high-end office buildings, located in the capitals of Central European countries. In the Czech Republic, Berlin and Warsaw, CPIPG strengthened its position as market leader in terms of GLA held. In Poland, it added 10 high-end office properties in Warsaw and currently stands at 548,496 sqm GLA. The Group has strengthened its position and gained strong European platforms in Austria, Romania and Hungary, among others. CPIPG is present in markets with stable dynamics. The current occupancy of all office properties is 90.9%, and the high-quality tenant portfolio is perfectly diversified.

The office portfolio is worth €8,913 million.

In terms of retail properties, CPIPG has expanded its portfolio, and now has 112 locations in 6 countries and the Adriatic region. With the acquisition of IMMOFINANZ shares, the Group is the undisputed leader in the Czech market, with all types of large-format retail outlets. The Group has also gained platforms in Central and Eastern Europe - in Poland, Romania, Slovakia, the Adriatic countries and Italy. The geographically diversified portfolio includes major regional shopping centers and retail parks. In Poland, City Market's portfolio of 2 shopping centers and a chain of retail parks has expanded to include 4 VIVO! shopping centers and 10 STOP SHOP retail parks. All of the retail establishments owned by CPIPG's fit the needs of local communities and are popular shopping destinations. They are characterized by a well-chosen, strong tenant portfolio and a stable occupancy rate of 98%. In Q1 2022, the collection rate was 98%.

The retail portfolio is worth €4,398 million.

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Following the purchase of IMMOFINANZ shares on May 30, 2022, CPIPG became the owner of 76.8% of shares in that company. The office portfolio expanded by 44 buildings and is now valued at €8,913 million. In terms of retail properties, the portfolio grew by 112 locations in 6 countries and the Adriatic region. The Group is the market leader in the Czech Republic. It gained platforms in Poland, Romania, Slovakia, the Adriatic countries and Italy. The retail portfolio is valued at €4,398 million.

The merger of teams and a new structure are the beginning of changes that will lead to the full unification of all operational and procedural processes. The primary focus will be on day-to-day work related to the implementation of plans and budgets for 2022. At the same time, we will strive to unify the work of operational systems. Our structure is a decentralized one, where decisions about individual markets are made locally. In the next stage, we will strive to further strengthen our position in the countries and prospective segments in which we operate, looking for new opportunities and avenues for growth.

CPIPG's acquisition of IMMOFINANZ is an unprecedented event in the commercial real estate market - both in terms of scale and growth vision. With the acquisition, CPIPG has gone from being a regional leader to owning one of Europe's largest platforms. The platform assumes full synergy of activities in the development and operation of both portfolios. It draws on the best strategic and operational experience of the combined teams. The enlarged portfolio guarantees the best possible geographic diversification of both office, retail and other facilities (hotels, residential, Complementary Assets). In terms of product, CPIPG offers a full range of high-quality solutions in the best locations of Central and Eastern European cities, responding to the needs of tenants and customers.