First Property Group PLC UK PPP: fund life extension and new investment (5919S)
17 November 2021 - 6:00PM
UK Regulatory
TIDMFPO
RNS Number : 5919S
First Property Group PLC
17 November 2021
Date: 17 November 2021
On behalf of: First Property Group plc ("First Property",
"the Company" or the "Group")
Embargoed: 0700hrs
First Property Group plc
UK Pension Property Portfolio: fund life extension and new
investment by the Group
As previously disclosed, the fund life of The UK Pension
Property Portfolio LP ("UK PPP" or the "Fund"), a closed-ended
commercial property investment fund managed by the Group, was due
to end on 5 February 2022. We are pleased to announce that terms
have been agreed with two of the Partners in UK PPP for the sale/
purchase of their interests in it and for the Fund's life to be
extended by some five years to 13 January 2027.
The price for the Limited Partnership interests being sold/
purchased, representing 56.6% of the Fund, amounts to GBP36.75
million (the "Price").
GBP32.25 million of the Price is being paid by Fprop UK Special
Opportunities LP (Spec Opps), a Fprop managed fund, and will result
in it owning 49.7% of UK PPP. The consideration payable by Spec
Opps is split between an amount of GBP21.5 million up-front and an
amount of GBP10.75 million deferred until 31 March 2022. The
deferred element will be funded by the sale of properties by UK
PPP. Some GBP22 million of property sales would be required to
fully fund this element.
The remainder of the Price is being paid by another
investor.
In order to finance the purchase, Spec Opps is raising just over
GBP21.5 million in new equity from its existing Partners,
comprising a consortium of Oxbridge colleges and First Property.
First Property's participation amounts to GBP3.24 million in new
equity.
Following the investments set out above, First Property will
have an interest of circa 12.04% in UK PPP (11.1% indirectly via
Spec Opps and 0.94% directly).
First Property will be paid an arrangement fee of GBP268,850 by
the Limited Partners which are selling their interests in UK
PPP.
Commenting on the new fund, Ben Habib, Chief Executive,
said:
"I am delighted by the outcome of our discussions with the
Limited Partners in these two funds and their restructuring.
"Investors in both these funds should benefit from a high rate
of income return on their investments and, hopefully, capital gains
in due course as markets recover from lockdowns."
-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)
Jill Aubrey (Company Secretary)
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 eleven of the thirteen funds
managed by FPAM.
Listed on AIM the Company has offices in London, Warsaw and
Bucharest. Further information about the Company and its products
can be found at: www.fprop.com .
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