13th May 2022 12:48
(Alliance News) - First Property Group PLC on Friday has signed leases at its Gdynia, Poland-based office.
The property fund manager and investor signed leases covering 2,691 square metres, or 20% of the net internal area, of its Gdynia office building. The carried value of this building is EUR16 million following a write-down in March last year due to it becoming 98% vacant as a result of Covid restrictions.
Property Fund anticipates the building to yield EUR2.5 million per year in rent and service charge when fully let.
The company said that currently the rent and service charge payable by tenants totals around EUR500,000 per year. This equates to about half the cost of operating the building.
First Property said that the principal tenant is the District Court, covering 15% of the net internal area, and it expects the court to attract other legal advisers and practitioners to rent space in the building.
Shares in First Property were down 1.5% at 32.0 pence in London on Friday.
By Sophie Rose; sophierose@alliancenews.com
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