CPI Property Group, which is 90 percent owned by the Czech billionaire Radovan Vítek, earned CZK 12bn last year, making 2016 the company’s most successful year to date. Net profits quintupled y-o-y. CPI director Martin Němeček warns, however, that while the economy is on the rise, and there is a lot of cheap money available on the market, reasonable investment opportunities are scarce. “Investors increasingly target property, and this pushes the prices of good-quality assets up, and at the same time, some investors shift their focus to properties with a high-risk profile.”
CPI’s asset value rose 25 percent y-o-y to CZK 153bn, following the CZK 18bn purchase of 11 shopping centers and office buildings in Central Europe, which was finalized five days ago. The new portfolio will produce weekly rent revenues of €1m, writes Hospodářské noviny. CPI offloaded nine office buildings in regional cities as well as Lozorno Logistic Park in Slovakia. Vítek plans to concentrate on the retail segment in four markets – Germany, Poland, Slovakia and Hungary. Its only project currently underway is the Zbrojovka brownfield redevelopment in Brno.
