CPIPG: Very good rental results in the office and retail segments for 2023
CPI Property Group (CPIPG) summed up the year 2023 in the area of office and retail leasing. The very good result confirms the effectiveness of the strategy, based on portfolio diversification, an owner-management model and continuous ESG-based building reinvestment.
The Group manages 24 buildings, with a total area of over 560,000 sq m and a value in excess of €1.7 billion. They are located in Warsaw's most desirable districts for tenants, with good service and communication infrastructure. In all of them, the ESG strategy is being successively implemented and, consequently, their value is constantly being increased. In 2023, the Leasing Office team finalised lease agreements with 168 tenants for an area of nearly 101,500 sq m, of which approximately 63,500 sq m are re-commercialisation agreements and approximately 38,000 sqm represent new tenants. Talks with further tenants are ongoing.
In 2023, CPIPG took over the management in all retail properties in the IMMOFINANZ portfolio. Currently, the combined portfolio of own assets amounts to more than 272,000 sq m of space worth €437 million, located in 23 facilities, in 20 regional cities across Poland. Geographical diversification is reinforced by qualitative diversity. CPIPG manages 6 shopping centres - 2 independent and 4 Vivo! brands - and 17 retail parks of 2 chains - STOP SHOP (11 locations) and CityMarket (6 locations). Within their catchment areas, all sites are local first choice retail centres. In 2023, retail and service space was leased to 143 tenants, which translates into 41,800 sq m. The total area of extended contracts was 29,500 sq m. (99 units) and new contracts - 10,276 sq m. (33 units). The average rental rate across all facilities is 99%! CPIPG also has over 20,000 sq m of retail and service space in office buildings. In the past year, 27 contracts were signed for 6,000 sq m. In a significant proportion of the buildings, the level of leased space is 100%.
"In the challenging year 2023, the CPI Property Group team has shown great diligence and negotiation skills. CPIPG's office facilities are meeting the expectations of existing tenants as well as attracting new ones. This is undoubtedly due to our Warsaw portfolio. All the office buildings within it are characterised by their high quality, thanks to constant subsidisation, modernisation and upgrading in line with tenant and ESG requirements. We can offer different quality space of any size, in locations tailored to the operational nature of individual companies. The above 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, is also appreciated. I hope that a similar pace will be maintained this year as well. In the retail segment, we are definitely winning with our geographical and quality diversification. Market players are keen to locate their shops in local shopping centres. The takeover of the property management in 2023 has already enabled us to develop optimised solutions, for example in terms of external costs, which has been appreciated by tenants - practically all those who renegotiated their contracts have stayed with us. Adding to this the high level of leases - I am very satisfied with our results," comments Barbara Topolska, Country Manager at CPI Property Group Polska.
