(Alliance News) - First Property Group PLC on Tuesday said it signed two new leases at an office property in Cluj-Napoca, Romania.
The London-based property fund manager and investor said the two leases represented an aggregate area of 945 square metres in office space at the Maestro Business Centre, which is owned by Fprop Cluj Ltd, in which First Property has a 21% stake.
First Property said the building is now fully let, up from 93% leased previously.
The company forecasted annual net operating income earned from the property to rise to approximately EUR985,000 per annum by May 2024 from around EUR915,000 currently, after rent abatement incentives have expired.
First Property said the environmental performance of the building was rated as 'excellent' in October last year by the Building Research Establishment, Environmental Assessment Methodology, otherwise known as Breeam.
Chief Executive Officer Ben Habib commented: "These are creditable leasing transactions and follow similar leasing progress at office properties under the group's management in Poland."
On Wednesday last week, First Property said it leased 2,100 square metres, or 11.6%, of its 17,937 square metres share in Blue Tower, Warsaw.
As a result of this new lease, the net operating income should increase by around 25% to EUR2.0 million per year from EUR1.6 million per year. The additional income will begin once the space has been fitted out, which is due to be completed by the end of 2023.
When fully let Blue Tower should generate a net operating income of EUR2.9 million per year, First Property noted.
Shares in First Property were untraded, quoted at 24.50 pence each on Tuesday around midday in London.
By Greg Rosenvinge, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
First Property (FPO)