CPI Property Group SA’s bonds tumbled after the Eastern European landlord became the latest target of short seller Muddy Waters.

Carson Block’s Muddy Waters said it was shorting CPI’s credit, claiming the firm is overstating the value of its assets and its cash accounts could be misstated. CPI has around €7.8 billion ($8.5 billion) of loans and bonds outstanding, according to data compiled by Bloomberg.

The company’s bond due January 2030 fell more than 3 cents on the euro Tuesday to the lowest and by the most since it was issued last year.

A representative for CPI Property Group didn’t immediately respond to requests for comment.

Owned by Czech billionaire Radovan Vitek, CPI Property Group has been selling assets to reduce the debt it piled on after an acquisition spree — a goal it’s been pursuing given greater urgency as higher interest rates dent valuations. The short report comes a day after the company elevated its chief financial officer to the role of chief executive in a show of making deleveraging a priority.

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Vitek remains the company’s majority shareholder, with a stake of more than 86%, according to data compiled by Bloomberg. Funds managed by Apollo Global Management Inc. hold more than 5%, which it acquired for €300 million in November 2021.

The company’s properties were valued at €20.3 billion as of June 30, down from €20.9 billion at the end of last year. Meanwhile, it’s been working to reduce its debt pile following the acquisitions of Austrian landlords Immofinanz and S Immo in 2022.

CPI Property Group borrowed €2.7 billion to fund those deals, of which about €1.7 billion has been repaid through disposals, new financing and cash, the firm said in an August earnings statement.