REG - First Property Group - Leasing update on Group property in Poland

First PropertyAnnouncement

13/05/2022 07:00

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RNS Number : 3513L  First Property Group PLC  13 May 2022

 Date:          13 May 2022
 On behalf of:  First Property Group plc ("First Property", the "Company" or the "Group")
 Embargoed:     07:00

 

First Property Group plc

Leasing update on Group property in Poland

 

First Property Group plc (AIM: FPO), the property fund manager and investor,
is pleased to report that it has signed leases covering some 2,691 m(2), or
20% of the net internal area ("NIA"), of its office building located in
Gdynia, Poland. The carried value of this building is €16 million following
its write down in March 2021, as a result of it becoming 98% vacant,
significantly due to covid related lockdowns.

 

The rent and service charge payable by tenants now totals approximately
€500,000 per annum. This equates to about half the cost of operating the
building. When fully let it is anticipated that the building should yield some
€2.5 million per annum in rent and service charge.

 

The principal tenant, accounting for 15% of NIA and occupying the entire first
floor, is the District Court in Gdynia. The Group expects the presence of the
court to attract other legal advisers and practitioners to take space in the
building.

 

The building, which spans some 13,400 m(2) of NIA, is located at 21 ul.
Podolska in prime central Gdynia, Poland's second largest seaport after
Gdansk. The Port of Gdynia has benefitted from considerable investment in
recent years and is currently being enlarged further to enable it to handle
Baltimax vessels, with corresponding investment in its road and rail
infrastructure.

 

-Ends-

 

For further information please contact:

 

 First Property Group plc                           Tel: +44 (0) 20 7340 0270
 Ben Habib (Chief Executive Officer)                www.fprop.com (http://www.fprop.com)

 Laura James (Group Finance Director)               investor.relations@fprop.com (mailto:investor.relations@fprop.com)

 Jeremy Barkes (Director, Business Development)

 Allenby Capital (NOMAD & Broker)                   Tel: + 44 (0) 20 3328 5656
 Nick Naylor / Freddie Wooding (Corporate Finance)

 Amrit Nahal (Equity Sales)

 Newgate Communications (PR)                        Tel: + 44 (0) 20 3757 6880
 Robin Tozer / Richard Bicknell / Isabelle Smurfit  firstproperty@newgatecomms.com (mailto:firstproperty@newgatecomms.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. 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 thirteen
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 seven directly held properties in Poland and Romania, and
non-controlling interests in ten of the thirteen funds managed by FPAM.

 

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

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