News snapshot and market update from First Property Group plc 
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Fprop Snapshotx
Q2 2013x
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xxxFOP - forecast returns on equity comfortably > 20% per annum - pipeline growing - deadline xxxlooming for subscriptions (30 April)
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xxFprop's Commercial Investment Property Markets:


xxxPoland:
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xxxUnited Kingdom:

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  • Polish GDP grew by 2.0% in 2012, putting it at the top of Euro area league tables - again;
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  • GDP growth is forecast to slow to 1.3% in 2013, but still ahead of the Euro area, and is forecast to pick up in H2 2013;
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  • Consumer spending slowing and savings rates growing;
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  • Banks keener to lend against property as local savings rates grow;
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  • Concern: Growth fails to pick us as predicted.
  • Triple dip recession fears;
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  • Commerical property values have been softening but appear to now be levelling - risk appetite is growing;
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  • It is possible to buy secure income streams on long leases set in 2009 or later at yields of 7%-9.5%;
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  • Opportunities emerging out of changing Government planning policies;
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  • Concern: As ever it is the economy and the potential ill effects of overly loose monetary policy. The Government appears to have abrogated its obligations to manage the economy to the Bank of England. Not confidence inspiring!

xxFprop Deal Flow:


xxxPoland:

xxxUnited Kingdom:

xxxWe have a growing pipeline of high yielding xxxinvestment propositions:
  • New office building, multi-let, second tier city - yield 9%.
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  • Core retail warehousing scheme - yield 8.25%.
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  • Single let new industrial facility - yield 8.50%.
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  • Industrial facility (multi-let - yield 15%).
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    and many more...
  • Discount retailer, 15 year lease, Midlands – yield 9.29%.
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  • Discount retailer, new 20 year lease, Yorkshire - yield 8.20%.
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  • Prime retail parade, WAULT 8 years, Yorkshire - yield 8.20%.
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  • DIY retailer, 15 years unexpired with fixed uplifts, West Midlands - yield 7.25%.

xxFprop Funds Open:


  • Poland - Fprop Opportunities plc (FOP) - targeting IRR & ROE of 15% p.a. (geared) or more.
    xxxxxxxxFund raising closing 30 April;
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  • UK - Fprop Sterling Income Fund (FSIF) - targeting dividend of 6% p.a. (ungeared) or more.
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    Both funds are currently exceeding their targets.

xxFprop Diary:


  • 16-18 April: INREV Annual Conference, Barcelona (Jeremy Barkes attending)
  • 30 April: Closing date of fund raising into Fprop Opportunities plc (FOP)
  • 5 June: Annual Results of First Property Group plc
  • 18 Sep: iGlobal Forum's Real Estate Private Equity Summit, London (Ben Habib speaking)
  • 7-9 October: EXPO Real, Munich (Ben Habib & Jeremy Barkes attending)

xxContact Fprop:


  • Contact: Jeremy Barkes, Director, Business Development
  • Phone: +44 (0) 20 7340 0270
  • Email: jeremy.barkes@fprop.com
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