EU property giants make €1.6bn move for London’s Globalworth
Czech CPI Property Group and German real estate company Aroundtown SA have confirmed a €1.57bn cash offer for London-listed Globalworth Real Estate Investments this morning.
The offer will go through CPI-owned Zakiono, giving the Cyprus-incorporated company 2.8m shares – which represents around 1.28 per cent of the company.
CPI and Aroundtown currently hold 113.8m Globalworth shares combined, representing 51 per cent of the Guernsey-incorporated company.
Globalworth shareholders will be entitled to get seven euros per share in cash, CPI said.
“Our strategy has been well-tested by Covid-19,” CPIPG CEO, Martin Nemecek, said. “We believe these steps will be positive for the group as we continue to pursue long-term investment opportunities.”
CPI, with a portfolio valued at around €10.3bn in December, works primarily with office properties, closely followed by retail assets.
Most of the real estate firm’s portfolio is based in the Czech Republic, which suggests the offer is a vote of confidence in post-Brexit London.
“Working together as partners will allow us to maximize long-term value while maintaining Globalworth’s investment grade capital structure,” chief financial officer of CPIPG, David Greenbaum, added.