First Property Group plc

Leasing progress at Polish property accounted for as an associate

First Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to report that it has signed a new five-year lease covering some 1,000 m², or 9.5% of the gross leasable area ("GLA"), of an office building in Lublin, Poland, owned by Fprop Opportunities plc ("FOP"), a fund managed by the Group and in which it is a 46% shareholder.

The new lease commenced on 5 October 2022. A rent-free period of one month was granted, following which the net operating income earned by the property should increase from €0.94 million per annum to €1.11 million per annum.

The property is now multi-let to 10 tenants and the vacancy rate has reduced to 16%. A further 1,670 m² remains to be let.

The building, which spans some 10,500 m² of GLA, is located in prime central Lublin, Eastern Poland. Lublin is an attractive city of historical importance and is Poland's ninth largest. It is known for its universities which in turn attracts employers due to the supply of young graduates. Due to its location in Eastern Poland, it is also benefiting from demand for space from companies with business operations in Eastern Europe, in particular from Ukraine and Belarus.

Jeremi Slominski, Head of Asset Management at First Property, said:

"This new leasing demonstrates increasing tenant interest for office space in Lublin, and in particular for our building, Zana 39, which is extremely well located and offers tenants good quality and cost-effective space."

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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 and 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 and their families. Further information about the Company and its properties can be found at: www.fprop.com.