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Date:
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25 July 2024
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On behalf of:
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First Property Group plc ("First
Property", the "Company" or the "Group")
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Embargoed:
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Immediate Release
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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014
WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("UK MAR").
First Property Group plc
Leasing progress at Group Property in Warsaw,
Poland
First Property Group plc (AIM:
FPO), the property fund manager and investor, is pleased to report
that it has signed a new 15 year lease with TV República for 3,100
square metres in Blue Tower, its directly owned office building in
Warsaw. The space had hitherto been vacant.
The lease is due to commence in
December 2024 following completion of fit-out
works.
The rent payable will be €16.55 per
square metre per month together with a service charge of €7 per
square metre per month. In total this lease will contribute some
€935,000 per annum (£800,000 per annum). The cost of the fit-out,
which will be borne by the landlord, amounts to some €1.80 million
(£1.54 million).
A balance of 1,800 square metres of
office space remains to be leased in the tower. If let at the same
rent and service charge level as that agreed with TV República, the
additional contribution to Group profit before tax would exceed
€508,000 per annum (£435,000 per annum).
The Group is also pleased to
announce that, following an exercise in ratioinalising overhead
costs, it has instituted savings of some £650,000 per annum. The
full benefit of these savings will be experienced in the year to 31
March 2026.
To fund, amongst other things, the
capital expenditure associated with the new lease and to further
underpin its balance sheet, the Group intends to raise new equity
capital by way of a pre-emptive offer to shareholders and a further
announcement in this regard is expected to be made in due course.
ENDS
For further information
please contact:
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First Property Group plc
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Tel: +44 (20) 7340 0270
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Ben Habib (Chief Executive
Officer)
Laura James (Group Finance
Director)
Jeremy Barkes (Director, Business
Development)
Jill Aubrey (Director,
Compliance & Company Secretary)
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investor.relations@fprop.com
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Allenby Capital (NOMAD & Broker)
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Tel: + 44 (20) 3328 5656
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Nick Naylor / Daniel Dearden-Williams
(Corporate Finance)
Amrit Nahal / Tony Quirke (Sales and
Corporate Broking)
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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 six directly held
properties in Poland, one in Romania, and non-controlling interests
in nine of the twelve funds managed by FPAM.
Quoted on AIM, the Company has
offices in London and Warsaw. Further information about the Company
and its properties can be found at: www.fprop.com.
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