Real-estate fund manager First Property (FPO) has announced it will bank a £2.5m profit on the sale of the two remaining properties in its Fprop PDR fund, which was established in October 2013. The proceeds from the sale, together with previous disposals, mean the company will have earned £4.8m in profits since Fprop was set up.
The success of the fund is due to First Property capitalising on a temporary change to the planning rules in 2013, which encouraged the conversion of offices to residential property. These rules are set to revert in May 2016, although a government consultation to extend the period may present First Property with further opportunities to repeat its streak of canny dealmaking.
Following the deal, analysts at Arden Partners upgraded their pre-tax profits and EPS forecasts by 14 per cent to £8m and 5.8p, respectively, for 2015.
