First Property Group PLC has announced the signing of a new 15-year lease with TV República for 3,100 square meters in Blue Tower, its directly owned office building in Warsaw. The lease is set to commence in December 2024, contributing approximately €935,000 per annum. The fit-out costs, amounting to around €1.80 million, will be borne by the landlord. Additionally, the Group has rationalized overhead costs, resulting in annual savings of £650,000, to be fully realized by the year ending 31 March 2026.
The Group also revealed that a balance of 1,800 square meters of office space remains to be leased in the tower, with the potential to contribute over €508,000 per annum to Group profit before tax. Furthermore, to fund capital expenditure associated with the new lease and strengthen its balance sheet, the Group intends to raise new equity capital through a pre-emptive offer to shareholders.
First Property Group PLC is an award-winning property fund manager and investor with operations in the United Kingdom and Central Europe. Its focus is on higher yielding commercial property with sustainable cash flows. The Company is flexible and takes an active approach to asset management, with earnings derived from fund management through its subsidiary, First Property Asset Management Ltd.