Business
Leasing progress by Group Property in Bucharest
Leasing progress by Group Property in Bucharest.
About this update from First Property Group Plc
[{"type":"text","content":"\n\n\n\n\nDate:\n\n\n8 June 2023\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\n7am\n\n\n\n \nFirst Property Group plc\nLeasing progress by Group Property in Bucharest, Romania\n \nFirst Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to report that it has signed a new seven year lease for 88%, or 2,515 m2 of its wholly owned office building in Bucharest, Romania. The building is now fully leased, up from 83% leased previously.\n \nTenant incentives amounted to some €100,000 or €40 per m2.\n \nAs a result of this new lease, the net operating income from this property should increase by 7%, from some €300,000 per annum to some €325,000 per annum. The weighted average unexpired lease term (WAULT) has doubled, from 2.9 years to 6.0 years.\n \nBen Habib, Chief Executive Officer of First Property, commented:\n \n\"This is a creditable transaction, leasing a substantial amount of space in a difficult sub sector of the market, offices. The new lease underpins this property and the low level of tenant incentives agreed reflects the strength of the location and proposition.\n \n\"The overall office vacancy rate in Bucharest is around 13%. It stands at some 11% in the central business district, in which the Group's office building is located.\n \n\"Investment markets across Central and Eastern Europe are challenging given the recent spike in inflation and interest rates but real economies are broadly holding up, notwithstanding these headwinds.\"\n \nENDS\n \nFor further information please contact:\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, Business Development)\nJill Aubrey (Director, Compliance & Company Secretary)\n\n\[email protected]\n \n\n\n\n\n\n\n\n\n\n\n\n\nAllenby Capital (NOMAD & Broker)\n\n\nTel: + 44 (20) 3328 5656\n\n\n\n\nNick Naylor (Corporate Finance)\nDaniel Dearden-Williams (Corporate Finance)\nAmrit Nahal (Sales and Corporate Broking)\n\n\n\n\n\n\n \nNotes to Investors and Editors:\n \nFirst Pr...