CPI Property Group (CPIPG), the largest owner of commercial properties in the Czech Republic, Berlin, and the Central and Eastern Europe region, has summarized its 2023 performance in the areas of office and commercial space leasing. The results confirm the effectiveness of their strategy based on portfolio diversification, owner-management model, and continuous reinvestment in buildings based on ESG assumptions.
CPI Property Group is a leader in the Warsaw office real estate market in terms of GLA. The Group manages 24 buildings, with a total area exceeding 560,000 m² and a value exceeding 1.7 billion euros. These are located in the most desired neighborhoods by tenants in Warsaw, with good service and communication infrastructure. An ESG strategy is consistently implemented in all these buildings, increasing their value continually. In 2023, the Leasing Office finalized lease agreements with 168 tenants for almost 101,500 m², of which about 63,500 m² were re-commerce agreements, and about 38,000 m² are new tenants. Further discussions with other tenants are ongoing.
In 2023 CPIPG took over management in all retail buildings from the IMMOFINANZ portfolio. Currently, the combined portfolio of their own assets amounts to over 272,000 m² with a value of 437 million euros, located in 23 buildings in 20 regional cities across Poland. The quality diversification strengthens the geographical diversification. CPIPG manages 6 shopping centers – 2 independent and 4 Vivo! brands, and 17 shopping parks from 2 chains – STOP SHOP (11 locations) and CityMarket (6 locations). All objects within their areas of impact are first choice local trading centers. In 2023, retail space was rented to 143 tenants, which translates to 41,800 m². The total area of extended contracts amounted to 29,500 m² (99 units), and new contracts – 10,276 m² (33 units). The average occupancy level in all buildings is 99%! CPIPG also manages more than 20,000 m² of retail space in office buildings. Last year, they signed 27 agreements for 6,000 m². In most buildings, the level of rented space is 100%.
“In the challenging year of 2023, the CPI Property Group team demonstrated immense diligence and negotiating skills. CPIPG’s office properties meet the expectations of existing tenants and also attract new ones. This is undoubtedly due to our Warsaw portfolio. All office buildings within it are of high quality, thanks to regular financing, modernizations, and increasing their value according to tenant requirements and ESG requirements. We can offer different quality space in any size in locations tailored to the operational nature of individual companies. These benefits translate into a high level of occupancy. As you can see – our proprietary management model, based on long-term relationships, optimal maintenance costs, and the efficient operation of our team are also appreciated. I hope that a similar pace will be maintained this year. In the retail segment, we clearly win by geographical and quality diversification. Market players are keen to locate their shops in local shopping centers. The takeover of property management in 2023 has already enabled optimized solutions, especially in the field of external costs, which has been recognized by tenants – practically all of them who renegotiated their contracts stayed with us. Adding to this the high level of occupancy – I am very satisfied with our results,” comments Barbara Topolska, Country Manager at CPI Property Group Poland.
