GBP100 Million USS Mandate

29 May 2007 07:02

First Property Group PLC29 May 2007 29 May 2007 First Property Group plc ("Fprop" or "the Company") Universities Superannuation Scheme Doubles Fprop Mandate €70 million Forward Commitment to Acquire Retail Centre in Bytom, Poland First Property Group plc (AIM: FPO), the property asset manager, which recentlyreceived FSA registration, enabling it to raise its own funds, announces thatthe Universities Superannuation Scheme ("USS") has doubled its investmentmandate with Fprop, from an initial £50 million commitment to a £100 millioncommitment in the USS Fprop Managed Property Portfolio. USS first provided Fprop with a mandate of £50 million in 2005, giving theCompany a remit to invest up to £200 million in commercial property in Centraland Eastern Europe and the United Kingdom. The initial mandate is now over 70%complete. Fprop is working on acquiring a further €100 million (£68 million)of property, which if acquired will more than fully utilise the initial £50 million. As a result of the above USS has doubled its commitment to the USS Fprop ManagedProperty Portfolio. Once fully invested, Fprop will have assets under managementin excess of £400 million. Fprop also announces that it has entered into a forward commitment to acquire aretail centre, which is to be built in Bytom, in the southern Silesian region ofPoland, for a sum in the region of €70 million (£47 million). This purchase isconditional, inter alia, upon the grant of detailed planning consent for thecentre. The Fund will acquire the centre once construction has been completedand there are commitments for at least 80% of the lettable area. Completion isanticipated in the first quarter of 2009. The centre will comprise some 269,000 sq ft (25,000 sq m) of retail, leisure andoffice space, with tenants including a supermarket, electronics goods andfashion retailers, a cinema and fitness centre. Ben Habib, Chief Executive of Fprop, commented, "Securing the support of USS wasa significant step forward for First Property and to have won an additional £50mcommitment is a tremendous endorsement of the Fprop team. "First Property has started 2007 strongly. We announce the Group's results on 6June 2007, in which I will report on our prospects in greater detail." For further information:Ben Habib - Chief Executive Richard Sunderland / Rachel DrysdaleFirst Property Group plc Tavistock CommunicationsTel: 020 7731 2844 Tel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock Exchange