- First half pre-tax profit more than trebles to £6.67m
- One new fund established, Fprop Fulcrum Property
- UK Pension Property Portfolio fund extended to 2027
- In talks to acquire further 32 per cent share of prime Warsaw office building
Aim-traded UK and eastern European property fund manager and investor First Property (FPO: 34p) has reported a 14 per cent rise in net asset value per share to 48.88p in the latest six month trading period. The key driver was a material debt reduction following restructuring of a finance lease on the group’s 13,500 square metre office property in Gydnia, Poland.
First Property previously had a short non-recourse €25m finance lease on the overrented property which expired in February, so had a strong hand to play with the lending bank, ING, when the tenant vacated. As part of the restructuring, the group paid ING €4m in cash and the finance lease liability was replaced by a €12m interest bearing loan (expiring in June 2024), hence a €9m debt reduction which led to a £7.8m profit being booked.