31st Mar 2016 08:02
LONDON (Alliance News) - First Property Group PLC on Thursday said it has, alongside a club of investors, acquired a shopping centre in northern Poland for EUR24.1 million.
The property fund manager and investor said it invested EUR2.0 million of the total cost.
First Property said the net operating income from the shopping centre, located in Swinoujscie, is currently EUR1.9 million a year, equating to a net initial yield of 7.9%.
First Property expects to generate annual pretax profit on the shopping centre of EUR353,000, from the centre's total profit of EUR1.3 million, it said. This equates to a pretax rate of return on equity invested of 18% per annum.
"I am very pleased by the investment made by our clients and ourselves in this new shopping centre in Poland. It is well located, well designed and well let at rent levels that offer room for growth," said Chief Executive Ben Habib.
Shares in First Property were up 0.5% at 47.50 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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