CPI Europe AG signs letter of intent to acquire Czech residential portfolio

CPI Europe AG has signed a non-binding letter of intent with Czech Property Investments, a.s., a subsidiary of CPI Property Group S.A., to acquire one of the country’s largest residential rental portfolios. The portfolio, branded CPI BYTY, comprises nearly 12,000 apartments spread across key Czech cities including Ústí nad Labem, Liberec, Ostrava and Prague.

The assets were valued at €891.6 million as of 30 June 2025 and generated €38 million in gross rental income during 2024. The deal forms part of CPI Europe’s strategy update announced earlier this month, which sets out a plan to consolidate assets and strengthen its position in core segments of the Czech real estate market.

CPI BYTY is regarded as a significant platform within the country’s rental housing sector. Its scale, covering 15 cities, has long been viewed as an anchor for CPI Property Group’s residential operations. The proposed transfer of ownership to CPI Europe AG is consistent with the group’s broader effort to realign assets across entities while maintaining control under the CPIPG umbrella.

The transaction remains subject to due diligence and other customary closing conditions, and both companies indicated that a conclusion is expected within the coming weeks. Market observers note that CPIPG has previously explored restructuring options for CPI BYTY, including opening the portfolio to retail investors through a local fund vehicle.

For CPI Europe, the acquisition would expand a portfolio that already includes 389 properties valued at €7.82 billion as of the first quarter of 2025, with occupancy levels reported at 93.7 percent. If completed, the deal would mark a significant step in regrouping residential holdings within CPI Europe’s balance sheet at a time when Czech rental demand is showing signs of stability following years of volatility.