First Property Group PLC
25 August 2005
Fprop wins £50million investment mandate from Universities Superannuation Scheme
First Property Group plc ('Fprop' or 'the Company'), the online commercial
property transaction platform and property asset manager, announces that it has
reached agreement to manage a new property investment fund on behalf of The
Universities Superannuation Scheme Ltd ('USS'). USS will invest up to £50
million in the fund, which will also be able to borrow externally up to a
maximum of three times the amount invested in the fund by USS.
The fund will invest in commercial property in the United Kingdom, and Central
and Eastern Europe, utilising Fprop's expertise in the UK and its recently
opened Warsaw office. Typical lot sizes are likely to be between £3 million and
£30 million covering the retail, office and industrial sectors.
Once invested, the fund will substantially increase Fprop's funds under
management from its current level of £21 million. Fprop will earn annual fees in
relation to the value of properties under management and incentive fees if
certain minimum rates of return are earned for the fund.
Commenting on the establishment of the fund, Ben Habib, CEO of First Property
Group, said: 'Securing the support of USS is a very significant step forward for
First Property. To have won a mandate from such a well known and respected
organisation as USS is a tremendous endorsement of the Group and our track
record.
'My colleagues and I very much look forward to repaying this endorsement by
delivering superior rates of return to USS. Given our expertise in the UK and
now Poland I am confident that we will do so in a relatively short period of
time.'
For further information:
Ben Habib - Chief Executive
First Property Group plc
Tel: 020 7731 2844
Richard Sunderland
Tavistock Communications Limited
Tel: 020 7920 3150
This information is provided by RNS
The company news service from the London Stock Exchange