Working with a group of investors, First Property Group has added a standing retail asset to its Polish portfolio. Located in the town of Świnoujście, the property is valued at €24.08 based on net operating income of €1.89m per year which the company says works out to a net yield of 7.85 percent per annum. The weighted average unexpired lease term is 4.5 years. The asset is expected to produce a gross profit of €1.25m per year, with the group’s share representing €353,000 per year, representing a return of 17.65 percent.
The buyers secured a €17.5m loan for the transaction from an undisclosed lender. The remaining equity was provided by First Property Group, together with a family office, University of Cambridge college, and other clients of the group.
