CPI Property Group (CPIPG)’s subsidiary, Endurance Hospitality Finance S.a.r.l (EHF), recently finalized an agreement with its major shareholder, Radovan Vitek.
The deal revolves around the transfer of all the shares in Rising Falcon Holding Limited (Rising Falcon), a company based in the Abu Dhabi Global Market free zone, to EHF.
Rising Falcon owns 20 residential properties in Dubai, United Arab Emirates which were recently valued at €349 million. The purchase price for the Rising Falcon portfolio was €273 million, or a discount of about 22%.
”No cash consideration was paid for the transaction; the purchase price has been offset against shareholder loans previously provided to Mr. Vitek,” the company said.
The Group intends to benefit from the strong market in Dubai and will gradually dispose of the assets.
The transaction qualifies as a related party transaction, since Mr Vitek holds 88.67% of CPIPG.
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