New fund management mandate

RNS Number : 7604H

First Property Group PLC

06 August 2021

 

Date:	6 August 2021
On behalf of:	First Property Group plc ("First Property", "the Company" or the "Group")
Embargoed:	0700hrs

First Property Group plc

New fund management mandate

First Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to announce that it has established a new fund in association with Fulcrum Asset Management ("Fulcrum"). Fulcrum is a fund manager which invests across all major asset classes and geographies. Its investment process is unconstrained by benchmarks.

The fund will invest in commercial property in the United Kingdom and Poland. Initial investments will be focused on retail warehouses, high street shops and offices in the UK.

Initial investors will comprise one client of Fulcrum and First Property Group. Initial equity commitments will amount to some £10 million of which First Property will contribute some £250,000. First Property will continue to co-invest 2.5% of subsequent equity subscriptions up to a maximum of £2.5 million.

Notices for redemptions may not be given before August 2024, with redemptions taking place 12 months after any such notices are served.

Investments by the fund may be leveraged, with a maximum loan amount of 60% of the value of the investments.

First Property will earn annual fees from the new fund calculated by reference to the value of the properties under management. First Property will also be eligible for a performance fee, subject to exceeding an internal rate of return of 8% per annum.

Commenting on the new fund, Ben Habib, Chief Executive, said:

"We are delighted to announce the establishment of this new fund, in particular because its investment remit spans the UK and Poland. The fact that Fulcrum Asset Management has chosen to partner with us in this endeavour is testament, amongst other things, to the excellent track record of First Property Group."

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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)	www.fprop.com [e-mail]
Arden Partners (NOMAD & Broker)	Tel: + 44 (20) 7614 5900
John Llewellyn-Lloyd (Director, Corporate Finance) Antonio Bossi (Director, Corporate Finance)
SEC Newgate (PR)	Tel:+ 44 (20) 3757 6880
Robin Tozer / Richard Bicknell / Isabelle Smurfit	[e-mail]

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. Around one third of the shares in the Company are owned by management and their families.

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 include seven directly held properties in Poland and Romania, and interests in ten of the twelve funds managed by FPAM.

Listed on AIM the Company has offices in London and Warsaw. Further information about the Company and its products can be found at: www.fprop.com .

 

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