Teconnex lease

RNS Number : 3011L

First Property Group PLC

29 April 2020

 

29 April 2020

First Property Group plc

("First Property" or "the Group")

Teconnex leases space at Industrial Park owned by First Property Group in Tureni, Romania

First Property Group plc, the property fund manager and investor with operations in the UK and Central Europe, is pleased to announce that it has entered into a new lease with Teconnex Ltd in respect of 6,300 m² in the warehouse it owns in Tureni, Romania. The building is now fully leased and should yield a net operating income of €250,000 in the year to 31 March 2021, up from €170,000 in the year to 31 March 2020. The rent-free period granted to the tenant expires in the current financial year, following which the net operating income should rise to €330,000 per annum.

Located on the DN1/E81 road, the 8,500 m² industrial and office site is 23 km south of Cluj-Napoca and 11 km north of the A3 motorway at Turda. This is an area which is seeing increased tenant and development interest.

Teconnex is a world leader in jointing technologies. It designs and manufactures V-clamps, pressed clamps and other joint technology solutions for the automotive, aerospace and industrial sectors. It is headquartered in the UK and distributes its products in its core market of Europe from its base in Tureni. It is part of Hedadex, a privately-owned group of companies with more than £100m in turnover.

The new lease follows the recent announcement that the Group completed the sale of the CH8 office tower in Warsaw, Poland, which returned the Group some €19.6 million in cash. Both the lease and sale were successfully completed against the backdrop of the COVID-19 crisis.

Commenting on the lease, Ben Habib, Group Chief Executive, said: "Teconnex's decision to increase its commitment validates our view that the warehouse is a well located, first class property. We are very pleased to strengthen and extend our long-term partnership with a world class company like Teconnex at our warehouse in Tureni."

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For further information please contact:

First Property Group plc	Tel: [phone]
Ben Habib (Chief Executive Officer) Jeremy Barkes (Director, Business Development) Liam Deacon (Marketing & Media Manager) Catalin Ana (General Manager for Romania)	www.fprop.com [e-mail]
Newgate Communications (PR)	Tel: + 44 (0) 7540 106366
Robin Tozer / Tom Carnegie	[e-mail]

Notes to 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 thirteen 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 eight directly held properties in Poland and Romania, and non-controlling interests in ten of the thirteen funds managed by FPAM.

Listed on AIM the Company has offices in London, Warsaw and Bucharest. Around one third of the shares in the Company are owned by management and their families. Further information about the Company and its products can be found at: www.fprop.com .

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