First Property Group PLC Material reduction in lease liability (6757M)
23 September 2021 - 3:59PM
UK Regulatory
TIDMFPO
RNS Number : 6757M
First Property Group PLC
23 September 2021
Date: 23 September 2021
On behalf of: First Property Group plc ("First Property",
"the Company" or the "Group")
Embargoed: 0700hrs
First Property Group plc
Material reduction in lease liability under rent guarantee
As previously reported, when First Property Group plc (AIM: FPO)
contracted to sell Cha ubińskiego 8 (CH8), in Warsaw, on 23
December 2019, it guaranteed the rent and service charge income for
the vacant office and ancillary space in the building together with
the fit-out costs of this space. The guarantee amounted to some
EUR1.20 million per annum in income for five years to April 2025
and up to EUR1.50 million for fit-out costs.
A provision of GBP2.31 million for the potential cost of this
guarantee was made in the financial year ended 31 March 2020 and a
further provision of GBP1.03 million was made in the financial year
ended 31 March 2021.
The Group is pleased to report that some 73% of the office space
subject to the guarantee has now been leased.
The new tenant is expected to start paying rent from January
2022, following completion of its fit-out. As a result, the Group's
maximum liability over the remaining life of the guarantee (until
April 2025) will reduce to some EUR1.37 million (GBP1.19 million),
of which some EUR318,000 (GBP277,000) has already been provided
for.
Ben Habib, Chief Executive, said:
"I am pleased to announce this material reduction in the cost of
the rent guarantee we provided to the new owners of CH8.
"It is a remarkable achievement to have made such inroads into
this liability so shortly after the end of lockdowns in Poland.
This is a testimony to the strength of the Polish economy and
office market as well as our team on the ground.
"When we reported on the outlook for the Group at the time of
the announcement of our annual results on 24 June, the future
looked bleak. Since then activity has increased significantly and
the Group is making good strides in its various endeavours.
" I expect the results for the year to 31 March 2022 to be
significantly better than those for last year, in line with
management expectations ."
-Ends-
For further information please contact:
First Property Group plc Tel: +44 (20) 7340
0270
Ben Habib (Chief Executive Officer) www.fprop.com
Laura James (Group Finance Director) investor.relations@fprop.com
Jeremy Barkes (Director, Business
Development)
Arden Partners (NOMAD & Broker) Tel: + 44 (20) 7614
5900
John Llewellyn-Lloyd (Director, Corporate
Finance)
Antonio Bossi (Director, Corporate
Finance)
SEC Newgate (PR) Tel:+ 44 (20) 3757
6880
Robin Tozer / Richard Bicknell / Isabelle firstproperty@secnewgate.co.uk
Smurfit
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. Around one third of the shares in the Company are
owned by management and their families.
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 thirteen 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 include seven directly held properties in
Poland and Romania, and interests in ten of the thirteen funds
managed by FPAM.
Listed on AIM the Company has offices in London and Warsaw.
Further information about the Company and its products can be found
at: www.fprop.com .
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END
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