First Property Group leaves Romania claiming lack of large-sized properties
First Property Group, a British fund for investment and real estate management listed on the main market of the London Stock Exchange, will exit Romania's real estate market - which it sees as not liquid enough and populated by small-size properties.
The group, which in 2016 bought together with several investors the spaces where nine Lidl stores operate, also owns an office building of 3,000 square meters on the local market, in downtown Bucharest, and a logistics centre in Tureni, Cluj County - both with a cumulative market value of almost EUR 7 mln.
The fund's managers explained that the properties on the Romanian market are much smaller than those in Poland.
"Romania was a very good experience for us, but we will sell the properties we still own here, and we will leave this market. On average, properties in Poland generate annual revenues between 5 and 8 million euros, while in Romania, revenues reach around one million euros. It is a fraction of what Poland generates. It doesn't make sense for us to continue to operate in this market, so we want to sell our properties. We expect to sell them at prices well above their carrying amount, and we will invest the resulting money in Polish properties," said Ben Habib, CEO of First Property Group, Profit.ro reported.
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