First Property Group plc Sale of Group Property investment in Romania
March 28 2017 - 2:00AM
Business Wire
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 €3.2
million. The sale will result in a profit before tax of just over
€1 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 €1 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.”
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170328005609/en/
First Property Group plcBen Habib (Chief Executive
Officer)George Digby (Group Finance Director)Jeremy Barkes
(Director, Business Development)Catalin Ana (General Manager for
Romania)Tel: +44 (20) 7340
0270www.fprop.cominvestor.relations@fprop.comorArden
Partners (NOMAD & Broker)Chris Hardie (Director, Corporate
Finance)Ben Cryer (Corporate Finance)Tel: + 44 (20) 7614
5900orRedleaf Communications (PR)Rebecca Sanders-Hewett /
Henry Columbine /Susie HudsonTel:+ 44 (20) 7382
4734firstproperty@redleafpr.com
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