Business
UK PPP: fund life extension and new investment
UK PPP: fund life extension and new investment.
About this update from First Property Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5919S\n First Property Group PLC\n 17 November 2021\n \n \n \n \n \n \n \n \n Date:\n \n \n \n \n 17 November 2021\n \n \n \n \n \n \n On behalf of:\n \n \n \n \n First Property Group plc (\"First Property\", \"the Company\" or the \"Group\")\n \n \n \n \n \n \n Embargoed:\n \n \n \n \n 0700hrs\n \n \n \n \n \n \n \n \n \n First Property Group plc \n \n \n UK Pension Property Portfolio: fund life extension and new investment by the Group\n \n \n \n \n \n As previously disclosed, the fund life of The UK Pension Property Portfolio LP (\"UK PPP\" or the \"Fund\"), a closed-ended commercial property investment fund managed by the Group, was due to end on 5 February 2022. We are pleased to announce that terms have been agreed with two of the Partners in UK PPP for the sale/ purchase of their interests in it and for the Fund's life to be extended by some five years to 13 January 2027. \n \n \n \n \n \n The price for the Limited Partnership interests being sold/ purchased, representing 56.6% of the Fund, amounts to £36.75 million (the \"Price\"). \n \n \n \n \n \n £32.25 million of the Price is being paid by Fprop UK Special Opportunities LP (Spec Opps), a Fprop managed fund, and will result in it owning 49.7% of UK PPP. The consideration payable by Spec Opps is split between an amount of £21.5 million up-front and an amount of £10.75 million deferred until 31 March 2022.\n The\n deferred element will be funded by the sale of properties by UK PPP. Some £22 million of property sales would be required to fully fund this element.\n \n \n \n \n \n The remainder of the Price is being paid by another investor.\n \n \n \n \n \n In order to finance the purchase, Spec Opps is raising just over £21.5 million in new equity from its existing Partners, comprising a consortium of Oxbridge colleges and First Property. First Property's participation amounts to £3.24 million in new equity. \n \n \n \n \n \n Following the investments set out above, First Property will have an interest of circa 12.04% in UK PPP (11.1% indirectly via Spec Opps and 0.94% directly).\n \n \n \n \n \n First Property will be paid an arrangement fee of £268,850 by the Limited Partners which are selling their interests in UK PPP.\n \n \n \n \n \n \n \n \n Commenting on the new fund, Ben Ha...