First Property Group PLC New investment by the Group in Poland (6684W)
February 13 2017 - 2:00AM
UK Regulatory
TIDMFPO
RNS Number : 6684W
First Property Group PLC
13 February 2017
Date: 13 February 2017
On behalf First Property Group plc ("First
of: Property", "the Company" or the "Group")
Embargoed: 0700hrs
First Property Group plc
New investment by the Group in Poland
First Property Group plc (AIM: FPO), the property fund manager
and investor, announces that it has, in conjunction with a club of
investors, agreed to acquire Pilot Tower, a recently built class A
office building in Krakow, Poland, at a total cost of some EUR23
million. Completion of the acquisition, which is unconditional save
for it being subject to receiving a ruling on the tax treatment of
the transaction, is expected to take place in the second quarter of
2017.
The net operating income being generated by the property is
currently EUR1.9 million per annum, equating to a net initial yield
on purchase of 8.3% per annum.
The acquisition will be part funded by a bank loan of up to
EUR15.9 million and cash of approximately EUR7.5 million. The cash
has been committed by two family offices, a Cambridge college, and
other clients of First Property. Included within this the Group
intends to co-invest EUR1.5 million pari-passu with other
investors.
The investment is forecast to earn a pre-tax profit of EUR1.16
million per annum, of which the Group's share, which will be
accounted for as an associate, should be EUR230,000 per annum. This
equates to a pre-tax rate of return on equity invested of more than
15% per annum.
The Group will also earn ongoing management fees of circa
EUR220,000 per annum. In addition it will earn a one-off
arrangement fee of EUR220,000.
Commenting on the new investment, Ben Habib, Group Chief
Executive, said:
"I am very pleased by the investment made by our clients and
ourselves in this striking new office building in Krakow, Poland.
It is in a prime location, boasts state-of-the-art facilities and
is fully let at rent levels that offer room for growth in due
course."
-Ends-
For further information please contact:
First Property Group plc Tel: +44 (20)
7340 0270
Ben Habib (Chief Executive www.fprop.com
Officer) investor.relations@fprop.com
George Digby (Group Finance
Director)
Jeremy Barkes (Director,
Business Development)
Arden Partners (NOMAD & Broker) Tel: + 44 (20)
7614 5900
Chris Hardie (Director, Corporate
Finance)
Ben Cryer (Corporate Finance)
Redleaf Communications (PR) Tel:+ 44 (20)
7382 4734
Rebecca Sanders-Hewett / firstproperty@redleafpr.com
Henry Columbine /
Susie Hudson
Notes to Investors and Editors:
First Property Group plc is an award winning property fund
manager and investor with operations in the United Kingdom and
Central Europe. Around one third of the shares in the Company are
owned by management and their families.
Its focus is on higher yielding commercial property with
sustainable cash flows. The company is flexible and takes an active
approach to asset management. Its earnings are derived from:
-- Fund management - via its FCA regulated and AIFMD approved
subsidiary, First Property Asset Management Ltd (FPAM), which earns
fees from investing for third parties in property. FPAM currently
manages ten funds which are invested across the United Kingdom,
Poland and Romania. FPAM funds rank No.1 versus MSCI's Investment
Property Databank (IPD) Central & Eastern Europe (CEE) universe
for the ten years from the commencement of its operations in Poland
in 2005 to 31 December 2015, and for the annualised periods from
2005 to the end of each of the years between 31 December 2008 and
31 December 2015.
-- Group Properties - principal investments by the Group, to
earn a return on its own capital, usually in partnership with third
parties. Investments include eleven directly held properties in
Poland and Romania (including five held by Fprop Opportunities plc
[FOP], in which the Group is currently the majority shareholder),
and interests in six other funds managed by FPAM.
Listed on AIM the Company has offices in London and Warsaw.
Further information about the Company and its products can be found
at: www.fprop.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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