23rd Dec 2019 12:51
(Alliance News) - First Property Group PLC said Monday it has agreed to sell a 50% interest in an office tower, Chalubinskiego 8, in Warsaw, Poland for EUR44 million.
The sale price reflects a 10% premium to its independently assessed market value.
As a condition of the sale, the property fund manager has guaranteed the rental and service charge income and fit-out costs on the residual vacant space, which amounts to EUR1.2 million and EUR1.5 million respectively.
First Property said the sale is expected to result in a pretax profit gain of GBP3 million at current exchange rates, and be recognised in its current financial year ending March 31, 2020.
The completion of the sale has been deferred until the treatment of value added tax related to it has bee approved by the Polish tax authorities, which is expected by the end of March.
Shares in First Property Group - which is based in London - were up 6.4% at 47.90 pence on Monday.
By Dayo Laniyan; [email protected]
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