First Property Group to sell Romanian warehouse for €3.2m

AIM-listed investor First Property Group is to sell a logistics warehouse in Romania for €3.2m to Aquila Part Prod, the current occupier of the property.

The warehouse in Ploiestri is one of the company’s three directly held properties in the country and the sale of the warehouse will result in pre-tax profit of just over $1m, representing a return on investment of some 50%.

Logistics firm Aquila, whose lease expires in July, will make quarterly instalments for the consideration between July and April 2023.

The company will retain legal title to the property until full payment of $3.2m has been received

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

Catalin Ana, general manager at First Property Asset Management Romania, said: "The economic outlook for Romania is strong, with further GDP growth forecast in 2017 and momentum building within the commercial property market. As such First Property Group remains committed to growing our presence there”.

Shares in First Property Group were up 3.62% to 48.70p at 0813 BST.