{ "docId": "019dd923-622c-750b-8b97-947b05921888", "docSlug": "a7cd2c3a1257", "documentTitle": "CPI Property Group (CPIPGR)", "authorId": "51_Muddy_Waters", "authorName": "Muddy Waters Research", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-06-03 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 7, "pageCount": 18, "prevPage": 6, "nextPage": 8, "slideType": "appendix_disclosure", "function": "expose_contradiction", "density": "dense", "nDataPoints": 4, "notes": "The slide highlights specific financial details of a related-party transaction, specifically the fair value of assets vs. consideration paid and the resulting contribution to retained earnings.", "elementsJson": [ "headline_text", "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b97-947b05921888/7", "deckHref": "/decks/019dd923-622c-750b-8b97-947b05921888", "deckJsonHref": "/decks/019dd923-622c-750b-8b97-947b05921888.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-947b05921888#slide-7", "components": [ { "bbox": null, "kind": "callout", "text": "The net cash outflow connected with the acquisition amounted to EUR 0 million as the consideration of EUR 273.0 million was off-set with loans provided by the Group to Senales Invest, entity fully owned by the Group's main shareholders.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-25b1-715b-8bd5-18fd836e1baa", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.035, "y": 0.16 }, "kind": "paragraph", "text": "CPI PG’s FY 2023 management report disclosure:1", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9da64125-37dd-4872-987b-7c3cb0a9b024", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.6, "w": 0.9, "x": 0.06, "y": 0.25 }, "kind": "paragraph", "text": "3.2 Property asset acquisitions in 2023\nRISING FALCON HOLDING LIMITED\nOn 29 December 2023, the Group acquired 100% share in RISING FALCON HOLDING LIMITED holding luxury residential projects in Dubai, United Arab Emirates. The portfolio includes 20 apartment units or villas, of which 3 are completed, and 17 are in various stages of development. Total fair value of these residential projects was EUR 297.8 million as of the date of transaction. The Group holds the Company for capital appreciation of its projects.\nSince the Group acquired all shares from its majority shareholder, the acquisition represents a common control transaction. The acquisition was recognized as a property asset acquisition as the company does not represent a business as defined by IFRS 3.\nThe RISING FALCON HOLDING LIMITED was acquired from the Group’s majority shareholder for consideration of EUR 273.0 million. The consideration was offset against loans provided to Senales Invest, the entity owned by the Group’s majority shareholder.\nThe Group applied acquisition method and recognised the transaction at the fair value of the acquired properties of EUR 297.9 million with the difference between the fair value of the consideration transferred and the fair value of the acquired assets as a contribution of EUR 24.9 million to retained earnings of the Group.\nNet identifiable assets of subsidiary acquired at the date of acquisition amounted to EUR 297.9 million, fully allocated to investment property by the Group. The net cash outflow connected with the acquisition amounted to EUR 0 million as the consideration of EUR 273.0 million was off-set with loans provided by the Group to Senales Invest, entity fully owned by the Group’s main shareholders.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "be2bf726-468b-43b6-9a2f-d07f0bb9559a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "The portfolio includes 20 apartment units or villas, of which 3 are completed, and 17 are in various stages of development. Total fair value of these residential projects was EUR 297.8 million as of the date of transaction. — CPI PG 2023 management report", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b1-715b-8bd5-1f6b34a796fd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.035, "y": 0.88 }, "kind": "source-note", "text": "1 CPI PG 2023 management report, p. 118", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8d64f3ce-f711-4156-9a4c-3594bc14bd3c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.027, "y": 0.045 }, "kind": "title", "text": "CPI PG’s Rising Falcon Disclosure:", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "098aaba5-f24e-4e7c-9204-4cd1c7b39eea", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 7, "from": 7, "beatId": "2e79985a-b189-4314-b4ee-467f33583c8a", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Appendix Disclosure", "beatSlug": null, "evidence": "Additional information is provided to support the claims", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 18, "from": 5, "name": "Iceberg", "slug": "10-iceberg", "bestFor": "Consulting, complex problem solving, organizational change", "matchId": "38e5d867-99b9-422b-8158-d17362e57c43", "evidence": "The document presents various pieces of evidence to support its claims", "position": 1, "objective": "To expose the underlying issues with CPI PG's acquisition", "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause", "confidence": 0.7, "description": "Reveal that the visible problem is merely a symptom of a deeper root cause" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }