First Property Group plc bags office complex in Transylvania

Fund manager and investor First Property Group plc has announced a multi-million pound deal to acquire a building in Romania.

The St James’s-based firm teamed up with a club of investors to acquire the Maestro office site in Cluj-Napoca, capital of the Transylvania region.

The complex, located on 21 Decembrie 1989 Boulevard, generates a net operating income of around €875k annually (c.£777k).

First Property Group said the deal was funded by a combination of equity and bank debt. The equity amounted to just over €3m, of which First invested around €510k.

The Maestro building is forecast to make an annual pre-tax profit of €550k, which would deliver €85k per annum for First Property Group.

First will also earn an €89k acquisition fee and ongoing management fees of about €111k a year.

Ben Habib, group chief executive at First, said: “I am very pleased by the investment made by our clients and ourselves in this well located office building in the centre of Cluj-Napoca.

“Cluj-Napoca is a fast growing city which is supportive for both rents and capital values.”

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