(Bloomberg) -- Eastern European landlord CPI Property Group SA has elevated David Greenbaum to chief executive officer as the company looks to focus on asset disposals and deleveraging.
Greenbaum, who has been chief financial officer since 2018, succeeds Martin Nemecek, who will take on a new role designed to help reduce the complexity of the group after a series of mergers and acquisitions, according to a statement on Monday.
The appointment came as CPI announced the sale of the companies that own and operate Suncani Hvar Hotels, which runs resorts on the Croatian island of Hvar, to UAE-based Eagle Hills Properties LLC, the company said separately.
Eagle Hills will pay more than €200 million ($219 million) for the properties, people with knowledge of the transaction said, asking not to be identified as the purchase price was not disclosed. A spokesman for CPI declined to comment on the price.
CPI Property Group, owned by Czech billionaire Radovan Vitek, has been selling assets to reduce the debt it piled on after an acquisition spree even as interest rates dented valuations. Greenbaum, former co-head of debt capital markets for Deutsche Bank AG in central and eastern Europe, will oversee that effort.
The company owns properties that were valued at €20.3 billion as of June 30, down from €20.9 billion at the end of last year. Its loan-to-value ratio — a key metric of relative indebtedness for landlords — was 49.9%, one percentage point lower but still at the top end of its target range.
The company’s debt pile grew following the acquisitions of Austrian landlords Immofinanz and S Immo in 2022. Of the €2.7 billion borrowings to fund the deals, about €1.7 billion has been repaid through disposals, new financing and cash.
Nemecek, a former lawyer, will now focus on simplifying the complex group structure that’s emerged as a result of the flurry of deal making.
“Our new management team will allow Martin to focus his energy on projects within the group’s strategic objectives, including asset sales, debt repayment and the further integration of Immofinanz and S-Immo,” Greenbaum said in the statement.
--With assistance from Alexander Sazonov.
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