10th Feb 2014 09:07
LONDON (Alliance News) - First Property Group PLC Monday said its Polish-focused fund, in which it has a 76.2% stake, has acquired an unnamed special purpose limited liability company (SPV) whose sole asset is a multi-let shopping centre in Ostroweic, southern Poland, in a deal worth EUR4.3 million.
Frop Opportunities PLC acquired the SPV from the USS Fprop Managed Property Portfolio LP, a fund managed by First Property Asset Management Ltd.
The price, paid in cash, is based on the SPV's expected net asset value. It also is subject to a final reconciliation based on the SPV's completion balance sheet, expected to take place this month.
At the date of the acquisition the SPV had third-party borrowings of EUR17.2 million.
First Property Group said the Ostoweic building is generating a net operating income of EUR2.1 million a year, while the weighted average unexpired lease term, to which the property is subject to, is over six year.
It is expected to contribute around EUR1.3 million in pretax profit to First Property's balance sheet each year.
First Property shares were off 1.3% at 26.78 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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