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First Property Group books €1mln pre-tax profit on sale of Romanian warehouse

The property fund manager said the sale was “opportunistic” and that it is still looking to grow its presence in Romania
The warehouse is one of three Romanian properties directly held by First Property

Property fund manager and investor First Property Group PLC (LON:FPO) has sold off one of its Romanian properties for a total consideration of €3.2 million.

The sale of the logistics warehouse in Ploiesti – one of the group’s three directly-held properties in Romania – will results in a profit before tax of €1mln.

All of the profits will be recognised in the current financial year which ends on 31 March 2017, First Property said.

The purchaser is a company called Aquila, which is also the current tenant and occupier of the warehouse. The lease expires in July this year.

"This is an opportunistic sale to a tenant at the end of its lease and is beneficial for both parties,” said group chief executive Ben Habib.

“I am pleased that the Group has realised a profit on cost of just over €1mln, representing a return on investment of some 50%."

Aquila is paying off the consideration in quarterly instalments between July 2017 and April 2023.

First Property will retain legal title to the property until full payment has been received, while any payments received would be non-refundable in the event of Aquila defaulting.

As for Romania, the group said the outlook is “strong” and that it would be looking to growing its presence there.

Shares opened 4% higher at 48.7p on Tuesday Morning.

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