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First Property Trading Ltd (1PT)

 

First Property Trading Limited was established in October 2002 with an unlimited life to invest in commercial property located in the United Kingdom.

 

Investors subscribed for £850,000 of equity and were returned £1,478,000 over its life, an IRR of 29% (or 40% prior to the deduction of management fees). First Property Group PLC co-invested £50,000.

 

In September 2005 the investment adviser, FPAM, proposed an orderly wind up on the grounds that commercial property yields had narrowed to close to the cost of debt finance, such that the spread between the two had all but disappeared. This situation first manifested itself in late 2004 but persisted in to 2005 to the degree that FPAM felt unable to continue further investment in the UK. All assets were sold by September 2006.




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