Investors Chronicle: ‘First Property is a shrewd operator’

Simon Thompson analyses First Property Group’s recent announcements on sales we’ve completed, new leases we’ve signed, and our share price. The columnist reports the sale of our share in the CH8 tower in Warsaw “generating an eye-catching internal rate of return (IRR) of 63 per cent since its acquisition in 2014” and argues “there is still a glaring valuation anomaly still to exploit…”

He adds: “Effectively, you are getting a free ride on these investments and a fund management business that manages £602m of third-party assets even though the company has a track record of outperformance, delivering an IRR of 25 per cent (including dividends) since 2006.”

Press Release: Warsaw’s CH8 Tower sells for €44 million (£38 million): First Property Group PLC completes transformational sale as Polish market bucks negative trends

First Property Group PLC, the property fund manager and investor, announces the sale of its [50.3] per cent interest in the CH8 Tower – also known as Chałubinskiego 8 – in central Warsaw for €44 million (£38 million).

Chief Executive Ben Habib argues the deal reflects the strength of Poland’s economy as commercial property transactions hit record rates ahead of coronavirus crisis. The sale nets Group their largest ever cash windfall of £16.7 million (€19.6 million), substantially increasing their future purchasing power into the hundreds of millions.