First Property Group plc

UK Pension Property Portfolio: fund life extension and new investment by the Group

As previously disclosed, the fund life of The UK Pension Property Portfolio LP ("UK PPP" or the "Fund"), a closed-ended commercial property investment fund managed by the Group, was due to end on 5 February 2022. We are pleased to announce that terms have been agreed with two of the Partners in UK PPP for the sale/ purchase of their interests in it and for the Fund's life to be extended by some five years to 13 January 2027.

The price for the Limited Partnership interests being sold/ purchased, representing 56.6% of the Fund, amounts to £36.75 million (the "Price").

£32.25 million of the Price is being paid by Fprop UK Special Opportunities LP (Spec Opps), a Fprop managed fund, and will result in it owning 49.7% of UK PPP. The consideration payable by Spec Opps is split between an amount of £21.5 million up-front and an amount of £10.75 million deferred until 31 March 2022. The deferred element will be funded by the sale of properties by UK PPP. Some £22 million of property sales would be required to fully fund this element.

The remainder of the Price is being paid by another investor.

In order to finance the purchase, Spec Opps is raising just over £21.5 million in new equity from its existing Partners, comprising a consortium of Oxbridge colleges and First Property. First Property's participation amounts to £3.24 million in new equity.

Following the investments set out above, First Property will have an interest of circa 12.04% in UK PPP (11.1% indirectly via Spec Opps and 0.94% directly).

First Property will be paid an arrangement fee of £268,850 by the Limited Partners which are selling their interests in UK PPP.

Commenting on the new fund, Ben Habib, Chief Executive, said:

"I am delighted by the outcome of our discussions with the Limited Partners in these two funds and their restructuring.

"Investors in both these funds should benefit from a high rate of income return on their investments and, hopefully, capital gains in due course as markets recover from lockdowns."

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Notes to Investors and Editors:

First Property Group plc is an award-winning property fund manager and investor with operations in the United Kingdom and Central Europe. Around one third of the shares in the Company are owned by management and their families.

Its focus is on higher yielding commercial property with sustainable cash flows. The company is flexible and takes an active approach to asset management. Its earnings are derived from:

Listed on AIM the Company has offices in London, Warsaw and Bucharest. Further information about the Company and its products can be found at: www.fprop.com.