First Property Group plc

New loan secured against a directly owned property

First Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to report that a loan of €1.7 million has been obtained by E and S Estates Ltd, the shares of which are 88.5% owned by the Group. The loan is secured on a supermarket in Praga, a suburb of Warsaw. The property is valued at €3.36 million, implying a loan to value ratio of circa 50%.

The forecast net income earned from the property, determined after deducting interest costs in respect of this new loan, amounts to some €160,000 per annum (£140,000[1]). This equates to a rate of return on equity invested, based on its appraised value, of some 9% per annum.

Group cash following this refinancing and following the sale by E and S Estates Ltd of two properties (as announced on 7 December 2022), amounts to some £8.5 million.

[1] Figure based on the EUR:GBP exchange rate as of 28 February 2023

ENDS

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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 three directly held properties in Poland, one in 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. To receive RNS alerts by email please subscribe here.