First Property Group PLC Sale of Group Property investment in Romania (6761A)
March 28 2017 - 2:00AM
UK Regulatory
TIDMFPO
RNS Number : 6761A
First Property Group PLC
28 March 2017
Date: 28 March 2017
On behalf First Property Group plc ("First
of: Property", "the Company" or the "Group")
Embargoed: 0700hrs
First Property Group plc
Sale of Group Property investment in Romania
First Property Group plc (AIM: FPO), the property fund manager
and investor, is pleased to announce that it has agreed to sell one
of its three directly held properties in Romania, a logistics
warehouse in Ploiesti, for a total consideration of some EUR3.2
million. The sale will result in a profit before tax of just over
EUR1 million, all of which will be recognised in the current
financial year ended 31 March.
The purchaser, Aquila Part Prod SRL ("Aquila"), is also the
current occupier of the property. The lease to Aquila expires in
July 2017.
Payment of the consideration is scheduled to be made in
quarterly instalments between July 2017 and April 2023. The Group
will retain legal title to the property until full payment has been
received. Payments received would be non-refundable in the event of
a subsequent default by the purchaser.
Commenting on the sale, Ben Habib, Group Chief Executive,
said:
"This is an opportunistic sale to a tenant at the end of its
lease and is beneficial for both parties. I am pleased that the
Group has realised a profit on cost of just over EUR1 million,
representing a return on investment of some 50%."
Catalin Ana, General Manager, First Property Asset Management
Romania SRL, said:
"The economic outlook for Romania is strong, with further GDP
growth forecast in 2017 and momentum building within the commercial
property market. As such First Property Group remains committed to
growing our presence there, and I look forward to updating the
market on our Romanian assets 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)
Catalin Ana (General Manager
for Romania)
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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