First Property Group plc Completes Acquisitions
First Property Group plc (AIM: FPO), the commercial property fund management group, announces that it has acquired a vacant office building in Bracknell, Berkshire and six largely vacant office buildings in Old Woking, Surrey, for a total net (of VAT) cash consideration of £3.4million including stamp duty and acquisition costs, from Group resources. The buildings comprise some 55,000 square feet of net usable area in total. The Company intends to convert both properties to residential use.
These acquisitions represent a return by the Company to development activities in the UK, the last development having been undertaken in 2003. There is currently a significant oversupply of offices in regional locations in the UK but a relatively buoyant residential market. The Company therefore believes that a good opportunity exists to acquire redundant office blocks with a view to converting these to residential use.
The Company hopes to acquire a number of such office blocks if they can be acquired on the right terms. Additional purchases are likely to be made in joint venture with third party investors via a fund structure.
Following these purchases the Group will have £10.8million in cash on its balance sheet, of which £8.5million is held by Fprop Opportunities plc (FOP).