Business
Correction: New investment in Cluj-Napoca Romania
Correction: New investment in Cluj-Napoca Romania.
About this update from First Property Group Plc
[{"type":"text","content":"\n \nRNS Number : 0620T First Property Group PLC 29 June 2018 \n\nThe following amendment has been made to the 'New Investment in Cluj-Napoca, Romania' Announcement released on 29 June 2018 under RNS Number 9882S.\nThe net operating income being generated by the property is around €875,000 per annum (not €875,000 million). \n \n\n\n\nDate:\n\n\n29 June 2018\n\n\n\n\nOn behalf of:\n\n\nFirst Property Group plc (\"First Property\", \"the Company\" or the \"Group\")\n\n\n\n\nEmbargoed:\n\n\n0700hrs\n\n\n\n \nFirst Property Group plc \nNew investment in Cluj-Napoca, Romania \n \nFirst Property Group plc (AIM: FPO), the property fund manager and investor, announces that it has, in conjunction with a club of investors, acquired The Maestro office building on 21 Decembrie 1989\nBoulevard, in Cluj-Napoca, Romania. Cluj-Napoca is the capital of Transylvania and has a population of some 320,000. A further 100,000 live in the wider metropolitan area. It also has 11 universities and a student population of over 100,000. \n \nThe net operating income being generated by the property is around €875,000 per annum and the property was acquired at a yield on purchase costs of some 9.4% per annum. The weighted average unexpired lease term is approximately 3 years. \n \nThe investment was funded by a combination of equity and bank debt. The equity component amounted to just over €3 million, of which the Group invested circa €510,000, pari passu with other investors. \n \nThe forecast annual pre-tax profit from the investment is €550,000 per annum, of which the Group's share after tax would be €85,000 per annum, which would equate to a post-tax rate of return on equity of 16% per annum. \n \nIn addition the Group will earn an acquisition fee of €89,000 and ongoing management fees of some €111,000 per annum.\n \nThe cash position of the Group following this investment amounts to £12.8 million. \n \nCommenting on the new investment, Ben Habib, Group Chief Executive, said:\n \n\"I am very pleased by the investment made by our clients and ourselves in this well located office building in the centre of Cluj-Napoca. Cluj-Napoca is a fast growing city which is supportive for both rents and capital values.\"\n \n-Ends- \n \nFor further information please contact:\n \n\n\n\nFirs...