At First Property we believe in investing in high yielding commercial investment property. When property values fall, yields increase and we consider buying. When property values rise, yields reduce and we consider selling.
Funds which are in their investment phase or have not yet expired
- Implied IRR’s: assumed sale price = NAVs as at 30 September 2025;
- ROE’s since inception: calculated using average pre-tax income per FY divided by original equity employed;
- ROE’s for 2024/25: calculated using annualised pre-tax income for FY divided by original equity employed.
Funds which have been wound up and cash returned to investors
We credit our recognition of the importance of high sustainable income returns as the key reason for our market leading track record. We also recognise the need to continually monitor macro and micro changes in our markets and to adapt our asset management approach accordingly. These points are exemplified by:
FPAM established its Warsaw office in June 2005, having been forced abroad in its quest for high income returns when the gap between commercial property yields in the UK and the cost of debt finance disappeared at the end of 2004. It now employs some 40 staff in Poland, capable of performing all aspects of property management in-house.
FPAM targets a minimum rate of income return on equity invested of 15% per annum (utilising leverage). It has been successful in achieving this.
Shareholders in FPAM’s first three funds earned an average IRR of 23% per annum, net after all fees and expenses.
By the end of 2004, commercial property yields had narrowed to close to the cost of debt finance and in some cases exceeded it, leading FPAM to conclude by mid 2005 that it was unable to safely continue further investment in the UK. It therefore recommended to its fund shareholders a sell program of UK commercial property assets.
In 2009 FPAM, following price falls in the wake of the credit crunch, Fprop returned to investing in the UK.
In 2013, in response to amendments to “Permitted Development Rights” legislation the Group switched its focus to development. Its Fprop PDR fund earned a net IRR for investors of 98% without the use of leverage.
We credit our recognition of the importance of high sustainable income returns as the key reason for our market leading track record. We also recognise the need to continually monitor macro and micro changes in our markets and to adapt our asset management approach accordingly. These points are exemplified by: