First Property Group PLC Launch of new platform for senior loans (8709B)
07 June 2023 - 4:00PM
UK Regulatory
TIDMFPO
RNS Number : 8709B
First Property Group PLC
07 June 2023
Date: 7 June 2023
On behalf of: First Property Group plc ("First Property",
the "Company" or the "Group")
Embargoed: 7am
First Property Group plc
Launch of a new platform for senior loans against commercial
property
First Property Group plc (AIM: FPO), the property fund manager
and investor, is pleased to announce the launch of a senior loan
making platform for the financing and refinancing of commercial
property. With interest rates increasing and banks retreating from
the commercial property lending market, the returns available in
making relatively safe loans are potentially more attractive than
investing in the underlying property.
Some GBP24 billion of commercial property loans are reported as
due to expire in the next 12-18 months.
The platform's focus will be on making loans of: up to GBP20
million in value; up to 65% of loan to value (LTV); and interest
only. The Board of First Property believe that the higher LTV and
interest only aspect of loans made via the platform make them close
to unique in the current state of debt markets. The capital for
making the loans via the platform will be sourced from First
Property's own cash resources and third party investors.
The Group' expertise in the underlying real estate gives the
platform a competitive advantage in making these loans.
Ben Habib, Chief Executive Officer, commented:
"Our move into senior secured commercial property lending via
this platform is in response to a clear gap in the market created
by higher interest rates and a retreat of traditional lenders,
including banks.
"Our loan platform offers borrowers better terms than are
typically available and investors in loans made on the platform a
high rate of return. For these reasons it is a good time to be
entering the market."
ENDS
For further information please contact:
First Property Group plc Tel: +44 (20) 7340
0270
Ben Habib (Chief Executive Officer) investor.relations@fprop.com
Laura James (Group Finance Director)
Jeremy Barkes (Director, Business
Development)
Jill Aubrey (Director, Compliance
& Company Secretary)
Allenby Capital (NOMAD & Broker) Tel: + 44 (20) 3328
5656
Nick Naylor (Corporate Finance)
Daniel Dearden-Williams (Corporate
Finance)
Amrit Nahal (Sales and Corporate Broking)
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, Warsaw and
Bucharest. 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
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END
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