CPI Property Group Responds to Latest Short Seller Report

CPI Property Group (CPIPG) has addressed the latest critical report by a short seller. The Group rebuffed the allegations, noting previous attacks were also deemed poor in quality. The recent focus was on assets in Dubai contributed by CPIPG's primary shareholder last year. The Group anticipated inquiries about the transaction and thus imposed rigorous scrutiny.

Between 2013 and 2022, Radovan Vítek contributed around €1.4 billion to CPIPG. Loans to shareholders were consistently reported and discussed with stakeholders. Though CPIPG acknowledges the practice isn't ideal, it will now rely solely on share buybacks.

The valuation of the Dubai assets involved experts like Cavendish Maxwell, PwC, and Dentons. The assets, purchased as personal investments, were valued at €273m, reflecting a 22% discount. This was later conservatively recorded at €298 million for year-end 2023, contributing €25 million in equity.

CPIPG plans to self-fund Dubai asset expenditures through sales or loans. Discussions with UAE banks are ongoing. The Group dismissed the short seller's inability to differentiate between debt and capital expenditures.

Recent sales, such as The Address Residence at Sky View, were completed above book value. CPIPG anticipates additional sales announcements soon.