First Property Group PLC Correction: New investment in Cluj-Napoca Romania (0620T)
June 29 2018 - 4:41AM
UK Regulatory
TIDMFPO
RNS Number : 0620T
First Property Group PLC
29 June 2018
The following amendment has been made to the 'New Investment in
Cluj-Napoca, Romania' Announcement released on 29 June 2018 under
RNS Number 9882S.
The net operating income being generated by the property is
around EUR875,000 per annum (not EUR875,000 million).
Date: 29 June 2018
On behalf of: First Property Group plc ("First Property",
"the Company" or the "Group")
Embargoed: 0700hrs
First Property Group plc
New investment in Cluj-Napoca, Romania
First Property Group plc (AIM: FPO), the property fund manager
and investor, announces that it has, in conjunction with a club of
investors, acquired The Maestro office building on 21 Decembrie
1989
Boulevard, in Cluj-Napoca, Romania. Cluj-Napoca is the capital
of Transylvania and has a population of some 320,000. A further
100,000 live in the wider metropolitan area. It also has 11
universities and a student population of over 100,000.
The net operating income being generated by the property is
around EUR875,000 per annum and the property was acquired at a
yield on purchase costs of some 9.4% per annum. The weighted
average unexpired lease term is approximately 3 years.
The investment was funded by a combination of equity and bank
debt. The equity component amounted to just over EUR3 million, of
which the Group invested circa EUR510,000, pari passu with other
investors.
The forecast annual pre-tax profit from the investment is
EUR550,000 per annum, of which the Group's share after tax would be
EUR85,000 per annum, which would equate to a post-tax rate of
return on equity of 16% per annum.
In addition the Group will earn an acquisition fee of EUR89,000
and ongoing management fees of some EUR111,000 per annum.
The cash position of the Group following this investment amounts
to GBP12.8 million.
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 well located office building in the centre of
Cluj-Napoca. Cluj-Napoca is a fast growing city which is supportive
for both rents and capital values."
-Ends-
For further information please contact:
First Property Group plc Tel: +44 (20) 7340
0270
Ben Habib (Chief Executive Officer) www.fprop.com
George Digby (Group Finance Director) investor.relations@fprop.com
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) 3757
6865
Robin Tozer / Lizzie Cowell firstproperty@redleafpr.com
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 eleven funds which are invested across the United Kingdom,
Poland and Romania.
-- Group Properties - principal investments by the Group to earn
a return on its own capital, usually in partnership with third
parties. Investments include ten 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 nine other funds managed by FPAM.
Listed on AIM the Company has offices in London, Warsaw and
Bucharest. Further information about the Company and its products
can be found at: www.fprop.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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