First Property Group Reports Decline in Third-Party Funds Under Management

Third-party funds under management at First Property Group have decreased due to various factors, including the sale of a property, a decline in property values, and the weakening of the Euro. As of August 31, the total amount of third-party funds was £383 million, compared to £400 million at the end of March. This decline in funds can be attributed to the sale of a property in a UK fund, valued at £5.4 million, as well as reductions in property values totaling £8 million.

Including properties owned by the company, the total funds under management as of August 31 amounted to £436 million, down from £454 million at the end of March. The company’s cash position also decreased during this period, with £6.6 million on August 31 compared to £7.65 million on March 31. The reduction in cash can primarily be attributed to capital expenditure for upgrades to the heating and cooling system at a property in Warsaw.

Despite these challenges, First Property Group remains optimistic and attentive to market opportunities. Chairman Alasdair Locke emphasized the company’s new role as a lender and its commitment to exploring potential prospects.

As of 0727 GMT, shares were down 1.45% at 17 pence.