Property fund manager and investor First Property Group has purchased a recently built office tower in Krakow, Poland with a club of investors for €23 mln.
The scheme, dubbed Pilot Tower, is 100% occupied.
'I am very pleased by the investment made by our clients and ourselves in this striking new office building in Krakow, Poland. It is in a prime location, boasts state-of-the-art facilities and is fully let at rent levels that offer room for growth in due course,' commented Ben Habib, Group chief executive.
The net operating income being generated by the property is currently €1.9 mln per annum, equating to a net initial yield on purchase of 8.3% per annum.
First Property said that the acquisition would be part funded by a bank loan of up to €15.9 mln and cash of approximately €7.5 mln. The cash has been committed by two family offices, a Cambridge college, and other clients of First Property.
First Property Group plc is a property fund manager and investor with operations in the United Kingdom and Central Europe. Listed on the alternative investment market, the company has offices in London and Warsaw.
Photo © Florian Vierhauser
