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  "documentTitle": "CPI Property Group (CPIPGR)",
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  "authorName": "Muddy Waters Research",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-01-22 00:00:00",
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  "notes": "The slide uses a forensic accounting approach to challenge the integrity of third-party property appraisals.",
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      "text": "To get to a 32.1% increase, it seems the weighting system must have heavily skewed towards the upside while setting the weighting of any downside factors to near zero.",
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      "text": "area-weighted average value: 32.1%",
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      "text": "We have criticized real estate appraisers over the years for their apparent malleability in the hands of their clients—most recently, for valuations provided to Vivion Investments.",
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      "text": "JLL uses a weighted average, showing inputs but providing neither the calculation nor sufficient information to recreate it. For FY2022, the area-weighted average value of JLL’s six properties with recent transactions equals €896, but JLL’s range weighted average is €1,223/sqm: 32.1% higher. The weighing factors have multiples at the low end of 0.85x for development status (e.g. construction ban) to 1.21x for market improvement since the transaction. To get to a 32.1% increase, it seems the weighting system must have heavily skewed towards the upside while setting the weighting of any downside factors to near zero.",
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      "kind": "paragraph",
      "text": "JLL made its property valuation estimate by comparing the Bubny Landbank to six other properties in the area (less than 1/10th of those used in our estimate). Three of the six properties are valued between €2,100 and €3,000/sqm (CZK ~50,000 to CZK 73,000), on par with the Prague Building Land Price Map’s most expensive. For example, properties around Wenceslas Square and the popular Pařížská commercial street are only as high as CZK 69,870.",
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      "kind": "source-note",
      "text": "1 See \"Vivion Investments S.á.r.l.: A Multi-Billion Euro Shell Game\". Published December 14, 2022. 2 CPI FIM 2022 Management Report, Pp. 35-36.",
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      "kind": "title",
      "text": "CPI PG’s Appraisals Seem to Use Cherry-Picked Comps to Skew the Weighted Average",
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