New Property Investment Fund

25 Aug 2005 07:00

First Property Group PLC25 August 2005 Fprop wins £50million investment mandate from Universities Superannuation Scheme First Property Group plc ("Fprop" or "the Company"), the online commercialproperty transaction platform and property asset manager, announces that it hasreached agreement to manage a new property investment fund on behalf of TheUniversities Superannuation Scheme Ltd ("USS"). USS will invest up to £50million in the fund, which will also be able to borrow externally up to amaximum of three times the amount invested in the fund by USS. The fund will invest in commercial property in the United Kingdom, and Centraland Eastern Europe, utilising Fprop's expertise in the UK and its recentlyopened Warsaw office. Typical lot sizes are likely to be between £3 million and£30 million covering the retail, office and industrial sectors. Once invested, the fund will substantially increase Fprop's funds undermanagement from its current level of £21 million. Fprop will earn annual fees inrelation to the value of properties under management and incentive fees ifcertain minimum rates of return are earned for the fund. Commenting on the establishment of the fund, Ben Habib, CEO of First PropertyGroup, said: "Securing the support of USS is a very significant step forward forFirst Property. To have won a mandate from such a well known and respectedorganisation as USS is a tremendous endorsement of the Group and our trackrecord. "My colleagues and I very much look forward to repaying this endorsement bydelivering superior rates of return to USS. Given our expertise in the UK andnow Poland I am confident that we will do so in a relatively short period oftime." For further information:Ben Habib - Chief ExecutiveFirst Property Group plcTel: 020 7731 2844 Richard SunderlandTavistock Communications LimitedTel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock Exchange