REG - First Property Group - Leasing progress by Group Property in Bucharest

First PropertyAnnouncement

08/06/2023 07:00

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RNS Number : 0199C  First Property Group PLC  08 June 2023

 Date:          8 June 2023
 On behalf of:  First Property Group plc ("First Property", the "Company" or the "Group")
 Embargoed:     7am

 

First Property Group plc

Leasing progress by Group Property in Bucharest, Romania

 

First Property Group plc (AIM: FPO), the property fund manager and investor,
is pleased to report that it has signed a new seven year lease for 88%, or
2,515 m(2) of its wholly owned office building in Bucharest, Romania. The
building is now fully leased, up from 83% leased previously.

 

Tenant incentives amounted to some €100,000 or €40 per m(2).

 

As a result of this new lease, the net operating income from this property
should increase by 7%, from some €300,000 per annum to some €325,000 per
annum. The weighted average unexpired lease term (WAULT) has doubled, from 2.9
years to 6.0 years.

 

Ben Habib, Chief Executive Officer of First Property, commented:

 

"This is a creditable transaction, leasing a substantial amount of space in a
difficult sub sector of the market, offices. The new lease underpins this
property and the low level of tenant incentives agreed reflects the strength
of the location and proposition.

 

"The overall office vacancy rate in Bucharest is around 13%. It stands at some
11% in the central business district, in which the Group's office building is
located.

 

"Investment markets across Central and Eastern Europe are challenging given
the recent spike in inflation and interest rates but real economies are
broadly holding up, notwithstanding these headwinds."

 

ENDS

 

For further information please contact:

 

 First Property Group plc                                      Tel: +44 (20) 7340 0270
 Ben Habib (Chief Executive Officer)                           investor.relations@fprop.com (mailto:investor.relations@fprop.com)

 Laura James (Group Finance Director)

 Jeremy Barkes (Director, Business Development)

 Jill Aubrey (Director, Compliance & Company Secretary)

 Allenby Capital (NOMAD & Broker)                              Tel: + 44 (20) 3328 5656
 Nick Naylor (Corporate Finance)

 Daniel Dearden-Williams (Corporate Finance)

 Amrit Nahal (Sales and Corporate Broking)

 

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. 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 twelve
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 comprise three directly held properties in Poland, one in Romania,
and non-controlling interests in ten of the twelve funds managed by FPAM.

 

Quoted on AIM, the Company has offices in London and Warsaw. Around one third
of the Company's shares are owned by management, directors and their families.
Further information about the Company and its properties can be found at:
www.fprop.com (http://www.fprop.com) . To receive RNS alerts by email please
subscribe here
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