AIM-listed property fund management group First Property said that its newly launched opportunity fund has made its first property acquisition with the purchase of a Carrefour hypermarket in Lodz, Poland for EUR 20 mln. The asset is leased with a term of 11 years and is forecast to earn a return on equity invested of approximately 30% per annum.

AIM-listed property fund management group First Property said that its newly launched opportunity fund has made its first property acquisition with the purchase of a Carrefour hypermarket in Lodz, Poland for EUR 20 mln. The asset is leased with a term of 11 years and is forecast to earn a return on equity invested of approximately 30% per annum.

'We expect to announce further investments in due course, all of which we expect will exceed our minimum 15% per annum target rate of return,' said Ben Habib, Chief Executive of First Property Group.

First Property's asset management unit announced last week that it was launching a new opportunity fund, Fprop Opportunities (FOP) to invest in commercial property in Europe, concentrating on Poland. The group committed to invest £7 mln (roughly EUR 10 mln) in FOP and to maintain its share in the fund to just over 7%. The company hopes to raise around £100 mln of equity from third party investors, giving the vehicle a spending power of up to EUR 400 mln.

According to the group directors, the property market in Poland offers relatively high yielding properties compared to the UK market with secure and potentially growing income streams. 'The launch of FOP represents a major step for the Group as we believe the current economic climate is ripe to exploit the buying opportunities we are seeing, particularly in Poland,' said Ben Habib.

He added: 'Poland's positive economic fundamentals, its growing occupier demand within the property market and relatively few buyers of Polish commercial investment property at present, has created a good buying opportunity for the Fund.'