Last checked at 8 Feb 2010 07:00
Date: 8 February 2010
On behalf of: First Property Group plc ("First Property" or the "Group")
Embargoed: 0700hrs
First Property Group plc
§ New Fund Management mandate to invest £106 million in UK commercial property
First Property Group plc (AIM: FPO), the AIM-listed property fund management group, today announces that its principal subsidiary, First Property Asset Management Limited ("FPAM"), has signed a contract to establish a seven year closed ended fund (the "fund") to invest in UK commercial property with a cash commitment of £106 million. This follows the announcement at the interim results on 30 November 2009, that FPAM had received indications of interest for in excess of £50 million for such a fund.
The fund will be called The UK Pension Property Portfolio LP and the external investors are exclusively UK pension clients of Stamford Associates, a leading international investment consultancy firm. First Property Group plc will co-invest £1 million in the fund and will earn annual fees from the fund based on the value of the properties under management, and may also earn additional fees if the fund achieves its performance targets.
The fund has been designed to pursue a core, and sometimes core plus strategy, focussing on well-let but slightly higher yielding mainstream commercial properties with an absolute return objective. The fund will initially be un-geared but may introduce gearing at a later stage, subject to the unanimous approval of the fund investors. The fund will target properties with lot sizes of between £3 million and £15 million.
The new fund marks a significant step in the growth of FPAM and, once invested, the cash commitment will represent an approximate 30% increase in assets under management to approximately £400 million (Sep 2009: £296 million). This will be FPAM's eighth fund and its second major institutional fund, the first being for the Universities Superannuation Scheme.
Ben Habib, Chief Executive of First Property Group plc, said:
"We are extremely pleased to have secured this new UK fund; not only does it mark a more substantial return to the UK for us, it is also an important milestone in our growth. Our focus in the coming months will be to invest this new UK fund; indeed we have already identified initial acquisitions."
For further information contact:
| First Property Group plc | Via Redleaf Communications |
| Ben Habib (Chief Executive) | www.fprop.com |
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| Arden Partners | Tel: 020 7614 5900 |
| Chris Hardie (Director Corporate Finance ) |
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| Redleaf Communications | Tel: 020 7566 6700 |
| Adam Leviton/Kathryn Hurford | firstproperty@redleafpr.com |
§ Publication quality photos are available from Redleaf Communications
Notes to editors:
About First Property Group plc
§ First Property Group plc was established in March 2000 by Chief Executive Ben Habib and listed its shares on the Alternative Investment Market (AIM) in December 2000.
§ First Property Group plc is a property services group which provides the following core services:
- Property Fund Management - established in August 2002 and provided by a wholly owned subsidiary, First Property Asset Management Ltd (FPAM), with operations in the UK, Central and Eastern Europe;
- Property Trading - established in August 2001, also provided by FPAM, with operations in the UK, Central and Eastern Europe;
- Facilities Management - acquired 60% of First Property Services Ltd, (formerly F W Cook Services Ltd) an air conditioning installation and maintenance contractor.
§ Further information about the Company and its products can be found at: www.fprop.com
About Stamford Associates Limited ("SAL")
§ Established in 1984 and based in London, SAL is a UK incorporated company which is authorised and regulated by the Financial Services Authority. It is a leading international investment consultancy providing added value solutions to its institutional clients' investment challenges. It has a dedicated team that has a wealth of experience encompassing asset management, portfolio analysis, performance measurement, behavioural finance and investment consultancy.