Launch of new platform for senior loans

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 £24 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 £20 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: [phone]
Ben Habib (Chief Executive Officer) Laura James (Group Finance Director) Jeremy Barkes (Director, Business Development) Jill Aubrey (Director, Compliance & Company Secretary)	[e-mail]
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 receive RNS alerts by email please subscribe here.

 

END