Leasing progress by Group Property in Bucharest

First Property Group plc

Leasing progress by Group Property in Bucharest, Romania

First Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to report that it has signed a new seven year lease for 88%, or 2,515 m² of its wholly owned office building in Bucharest, Romania. The building is now fully leased, up from 83% leased previously.

Tenant incentives amounted to some €100,000 or €40 per m².

As a result of this new lease, the net operating income from this property should increase by 7%, from some €300,000 per annum to some €325,000 per annum. The weighted average unexpired lease term (WAULT) has doubled, from 2.9 years to 6.0 years.

Ben Habib, Chief Executive Officer of First Property, commented:

"This is a creditable transaction, leasing a substantial amount of space in a difficult sub sector of the market, offices. The new lease underpins this property and the low level of tenant incentives agreed reflects the strength of the location and proposition.

"The overall office vacancy rate in Bucharest is around 13%. It stands at some 11% in the central business district, in which the Group's office building is located.

"Investment markets across Central and Eastern Europe are challenging given the recent spike in inflation and interest rates but real economies are broadly holding up, notwithstanding these headwinds."

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, directors 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.