CPI PROPERTY : REDEVELOPS BRNO’S FORMER ZBROJOVKA AREA INTO NEW CITY DISTRICT

Brno / Czech Republic / Luxembourg, 5 October 2016- The former Zbrojovka Area in Brno is ​​awaiting a ground-breaking transformation. Real estate and investment company CPI Property Group, launched the revitalisation of the area with the development project Nova Zbrojovka. The ambition of the new proprietor of this 20-hectare brownfield land in central Brno is to create a lively, modern and easily accessible area, which expands the current supply of residential and leisure opportunities. 'With a highly experienced team of professionals and a strong, stable financial background we are breaking new ground in Brno, with project Nova Zbrojovka becoming the largest development initiative in the Group's history,' said Martin Němeček, CEO, CPI Property Group. The planned investment in the enterprise will exceed EUR 150 million with the entire project forecast to be completed by approximately 2027.

In the approaching years, Nova Zbrojovka will develop to a fully-fledged urban area enriching the city of Brno with high quality, comfortable facilities offering new office and production space to businesses and shops with a range of modern apartments to families. 'With full respect to the history of the area, existing buildings and urbanism of Brno-Židenice we intend to build a unique project, unrivalled in scale and region,' said Zdeněk Havelka, Executive Director of CPI Property Group.

The former Zbrojovka site will include a large number of offices with a total area of 30 thousand square metres, where future tenants will receive high degrees of comfort, design and service all within an attractive location with easy access to Brno city centre via excellent transport links. Tenants will not only appreciate significant energy efficiency and an improved technical standard of building but also considerably lower operating costs. There will be over 40 thousand square metres of light industrial buildings with approximately 3,600 square metres allocated to retail. A significant part of Nova Zbrojovka will be the exclusive residential apartments located on the banks of the river Svitava, the luxury apartment complex will meet the requirements of contemporary European design and lifestyle.

The project is planned in several phases. This June, ground decontamination started, with the following steps involving the removal of statically substandard buildings while reconstruction begins on the six existing buildings. The first stage will culminate in 2020 with the completion of the construction of two brand-new buildings. In addition, the project will see the completion of transport infrastructure to the area. 'The next stage will be to continue the renovation of existing buildings and for the year 2021 we plan to complete a residential area with nearly eight hundred modern apartments,' said Josef Lhotský, Director of Zbrojovka Project.

CPI Property Group has extensive experience with similar projects in the Czech Republic as well as throughout Europe. The revitalisation of the former industrial park in Berlin reflects the Group's ambitions with Nova Zbrojovka. Berlin was successful in managing to transform into a modern complex, while retaining the 'genius loci'of the original complex. Housed in Berlin, for example, is Humboldt University alongside its student's club in addition to a number of restaurants, established companies and new start-ups. 'Our portfolio of Berlin is the inspiration we would like to take Nova Zbrojovka. Built on the traditional industrial character of the existing, statically compliant buildings the project's intention is to preserve this constitution for the site's appearance,' explains Zdeněk Havelka. Architects will create an elegant and timeless structural complex combined with a strong concept represents an exceptional opportunity for the development of the project. Nova Zbrojovka builds on the 'genius loci', giving this historical site the rejuvenation it needs to successfully progress in the forthcoming years.

Certain current tenants over time have rebuilt their industrial premises for their own requirements. In this way, for example, there is the original showroom and workshop of glass company SIO2, which deals not only with production of glass, but also amalgamating the right products with industrial art and design. 'Existing tenants who have already completed alterations and improvements have invested their money need not worry, CPI Property Group counts on the integration of these tenants into the new project, and looks forward to the help and experience they can offer with the inspiration and interest in the industrial area,' said Zdeněk Havelka.

The revitalisation project also welcomes the leadership of the city of Brno and Brno-Židenice. 'We are pleased that the city's appeal has managed to attract a new investor that the citizens can signify as an important component of Brno. I believe that these investors will succeed with Nova Zbrojovka in delivering growth and development with a diverse range of services and opportunities for work and housing. We are enthusiastic to establish a quality public space alongside convenient city transportation services,' said Petr Vokřál, Mayor of Brno City. A new modern image together with the cooperation of the city with the addition of public spaces will transform the city centre's appearance as a whole. 'Project Nova Zbrojovka is an extraordinary opportunity, thanks to which a significant segment of land in Brno-Židenice will transform for the better. I am convinced that the area has tremendous potential and we will be delighted when there will be a modern complex that offers what this part of Brno has been lacking for decades,' said RenéNovotný, Mayor of Brno-Židenice.

CPI Property Group appreciates the progress of current negotiations not only with town councillors, but also the open and transparent communication with the public. Since the beginning of the project, the Group has strived to engage with the people of Brno whom were responsible for the decision via a popular poll to vote on the project's new name Nova Zbrojovka. 'We recognise that local premises have close ties with the project, so we intend to regularly report and update the public with on-going projects on the new site. We would like to achieve a new, modern image for an area where the whole city can spend time and enjoy together,' said Zdeněk Havelka.

Nova Zbrojovka in numbers:

• Over
EUR 150 million total investment

• 800 Riverside apartments

• 30,000 square metres of office space

• 3,600 square meters of retail space

• 40,000 square metres of industrial space

• 2027 year of completion

CPI PROPERTY GROUP is one of the leading real estate groups targeting long-term investments and property rentals, particularly in Central & Eastern Europe and Germany. The majority of the Group is owned by the real estate investor Radovan Vitek, who as of 2014, incorporates not only a valuable real estate portfolio, but also more than 20 years of experience investing in the Central European real estate market. The Group is headquartered in Luxembourg, while its shares are traded on the Frankfurt Stock Exchange. The Group manages assets worth in an excess of EUR 5 billion and operates in retail, office, residential and hotel accommodation, industrial parks and logistics centres. The youngest segment is agriculture, where the CPI Property Group is targeting capital appreciation with its extensive portfolio of agricultural lands and stable income from its management. The Group also owns an extensive portfolio of land in the Czech and Slovak Republics, as well as in Poland, Hungary, Romania and Germany.