First Property sells office building in Warsaw

First Property, the commercial property fund management group, has pocketed a tidy profit on the sale of one of its two directly owned properties, an office building in Mokotow, Warsaw.

The company, which bought the building in November 2007, has raised PLN 11.95m - about £2.3m - from the sale which, after accounting for transaction costs and foreign exchange gains, resulted in a profit of around £0.12m for the company. The sale will not have any material bearing on the group's earnings for the current financial year, which ends on March 31st, 2013.

The property generated an internal rate of return (IRR) for the group of 12.8% per annum during the period of its ownership.

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The group's cash position following the disposal, and the payment of the group's final dividend, amounts to some £11.5m. The group intends to use this cash as co-investment equity to purchase additional assets in partnership with third party investors.

JH