{
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  "docSlug": "3112e2e7b808",
  "documentTitle": "CPI Property Group (CPIPGR)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-01-22 00:00:00",
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  "density": "overcrowded",
  "nDataPoints": 12,
  "notes": "The slide uses a table to highlight the specific valuation inputs for the Bubny asset compared to other landbank assets.",
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      "text": "We therefore estimate that CPI PG inflates the Bubny landbank PP value (or carrying value) by ~100%.",
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      "kind": "metric",
      "text": "Fair value per sqm: €1,378/sqm",
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      "toolName": "Quantification",
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      "kind": "paragraph",
      "text": "CPI PG carries the asset value of the Bubny landbank as €276.9 million—or €1,378/sqm. CPI also discloses JLL's appraisal of the fair value for the Bubny landbank—€1,223/sqm, which despite its clear flaws, produces a valuation 13% lower than CPI PG's carrying value. We estimate JLL's valuation was inflated by approximately 77%.3",
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      "kind": "paragraph",
      "text": "Our comp database consists of publicly available data for 70 submarket land properties, totaling over 110,000 sqm. Our database average value is approximately €690/sqm, which is approximately half of CPI's €1,378/sqm carrying value. We therefore estimate that CPI PG inflates the Bubny landbank PP value (or carrying value1) by ~100%. Note that the comps appear to all have zoning approved for development, while Bubny still does not.2",
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      "kind": "paragraph",
      "text": "CPI PG seems to have taken massive, unfounded fair value gains on its largest landbank asset in Czechia—the Bubny Landbank (\"the Prague Brownfield\"). We estimate the value has been inflated by ~100% of market, or ~€139 million. This manipulation is based on JLL valuation that uses six cherry-picked comps.",
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      "kind": "source-note",
      "text": "1 CPI FIM 2022 Management Report, p. 16 & Notes to the Consolidated Financial Statements p. 24. The Group's Property Portfolio is reported at the carrying value. These values are used to report the Investment Properties' values and the valuation gains. 2 CPI FIM 2022 Management Report, Pg. 35-36. 3 CPI FIM 2022 Management Report, Pg. 35.",
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      "kind": "table",
      "text": "Table showing Landbank and Development, Fair Value 2022/2021, Valuation technique, Significant unobservable Inputs, and Range (weighted avg) 2022/2021.",
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      "kind": "title",
      "text": "Bubny Landbank Overview",
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      "evidence": "The deck presents evidence of overvaluation, including the case of the Bubny landbank and Polygon BC and MQM Czech.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
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  ],
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