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This morning, Germany’s CPI Property Group and German real estate company Aroundtown SA confirmed a €1.57 billion cash offer for London-listed Globalworth Real Estate Investments.
The offer will be made through CPI-owned Zakiono, giving the Cyprus-incorporated company 2.8 million shares, or approximately 1.28 percent of the company.
CPI and Aroundtown currently own 113.8 million Globalworth shares, accounting for 51% of the Guernsey-incorporated company.
According to CPI, Globalworth shareholders will receive seven euros per share in cash.
“Covid-19 has put our strategy to the test,” CPIPG CEO Martin Nemecek said. “We believe these steps will be beneficial to the group as we continue to pursue long-term investment opportunities.”
CPI, which had a portfolio worth around €10.3 billion in December, primarily works with office properties, followed by retail assets.
The majority of the real estate firm’s portfolio is based in the Czech Republic, implying that the offer is a vote of confidence in post-Brexit London.
“Working together as partners will allow us to maximise long-term value while maintaining Globalworth’s investment-grade capital structure,” CPIPG’s chief financial officer, David Greenbaum, added.
