Business
Leasing progress at Group Property in Warsaw
Leasing progress at Group Property in Warsaw.
About this update from First Property Group Plc
[{"type":"text","content":"\n\n\n\n\n\nDate:\n\n\n25 July 2024\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\nImmediate Release\n\n\n\n\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"UK MAR\").\n \nFirst Property Group plc\nLeasing progress at Group Property in Warsaw, Poland\nFirst Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to report that it has signed a new 15 year lease with TV República for 3,100 square metres in Blue Tower, its directly owned office building in Warsaw. The space had hitherto been vacant.\nThe lease is due to commence in December 2024 following completion of fit-out works. \nThe rent payable will be €16.55 per square metre per month together with a service charge of €7 per square metre per month. In total this lease will contribute some €935,000 per annum (£800,000 per annum). The cost of the fit-out, which will be borne by the landlord, amounts to some €1.80 million (£1.54 million).\nA balance of 1,800 square metres of office space remains to be leased in the tower. If let at the same rent and service charge level as that agreed with TV República, the additional contribution to Group profit before tax would exceed €508,000 per annum (£435,000 per annum). \nThe Group is also pleased to announce that, following an exercise in ratioinalising overhead costs, it has instituted savings of some £650,000 per annum. The full benefit of these savings will be experienced in the year to 31 March 2026.\nTo fund, amongst other things, the capital expenditure associated with the new lease and to further underpin its balance sheet, the Group intends to raise new equity capital by way of a pre-emptive offer to shareholders and a further announcement in this regard is expected to be made in due course. \nENDS\n \nFor further information please contact:\n \n\n\n\n\nFirst Property Group plc \n\n\nTel: +44 (20) 7340 0270\n\n\n\n\nBen Habib (Chief Executive Officer)\nLaura James (Group Finance Director)\nJeremy Barkes (Director, Busin...