First Property inks another lease at Gdynia asset

First Property Group updated the market on leasing progress at its office building in Gdynia, Poland, on Monday.

The AIM-traded company said it had successfully leased an additional 512 square metres, accounting for 3.7% of the total office space, to freight company Alfa Forwarding.

Rent payments from the new tenant were expected to commence around 1 April next year.

The board said the new lease deal was projected to reduce the building’s net operating loss to around €55,000 annually.

Despite the positive leasing progress, a significant portion of office space in the building, totalling 9,980 square metres or 72%, remained for lease.

First Property said it was actively engaged in discussions with four potential tenants, negotiating leases that could cover 1,265 square metres of the available space.

Once the building was fully occupied, it was expected to yield an annual net operating income of about €2.1m.

“The building, which spans some 13,900 square metres of net internal area, is located at 21 ul. Podolska in prime central Gdynia - Poland’s second largest seaport after Gdansk,” the First Property board said in its statement.

“The Port of Gdynia has benefitted from considerable investment in recent years and is currently being enlarged further to enable it to handle Baltimax vessels, with corresponding investment in its road and rail infrastructure.”

Reporting by Josh White for Sharecast.com.