Business
Sale of Group Property in Poland
Sale of Group Property in Poland.
About this update from First Property Group Plc
[{"type":"text","content":"\n \nRNS Number : 7898X First Property Group PLC 23 December 2019 \n\n\n\n\n\nDate:\n\n\n23 December 2019\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\n07:00\n\n\n\n\n \nFirst Property Group plc \nSale of Group Property in Poland\n \nFirst Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to announce that it has entered into a contract for the sale of one of its Group Properties, a 50.3% interest in Chałubińskiego 8 (CH8), an office tower in Warsaw, Poland, at a price of €44 million. Completion of the contract is deferred until the treatment of VAT relating to the sale has been approved by the Polish tax authorities, which is expected by 31 March 2020. \n \nThe sale price is at a premium of €5.2 million (13.4%) to the value at which the property is held in the accounts and a premium of €4.0 million (10.0%) to its independently assessed market value. \n \nAs a condition of the sale the Group has guaranteed the rental and service charge income and fit-out costs on the residual vacant space, amounting to some €1.2 million per annum and €1.5 million respectively. After making a provision for the potential cost of this guarantee, the sale should result in a profit before tax of some £3 million at current exchange rates after accounting for the foreign exchange gains held in the foreign exchange reserve. This profit should be recognised in the financial year ending 31 March 2020. \n \nThe net cash proceeds payable to the Group after tax and after the repayment of the bank loan secured against the property should amount to some €19.6 million (£16.7 million). As at 30 September 2019 the Group had cash balances of £8.55 million, resulting in pro forma Group cash resources of some £25 million, equivalent to some 22 pence per share. \n \n-Ends- \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)\nGeorge Digby (Group Finance Director)\nJeremy Barkes (Director, Business Development)\nPrzemek Kiszka (General Manager for Poland)\n\n\[email protected]\n \n \nTel: +48 (22) 331 7676\n\n\n\n\n \n\n...