First Property to Increase Its UK Property Market Investment

Recent ShareCast report suggests that First Property – one of the major property funds in Central and Eastern Europe – has demonstrated the signs of increased interest in the UK property market and plans to return to it. At the moment, First Property is investing only 5% of its funds in the UK market. However, the recently announced fund’s intentions to expand its investment in the UK property can be explained by the recent data, which shows that the confidence in the UK commercial property market has renewed as well as by a significant decrease in the markets of the regions that represent the major investment areas of First Property. To be more precise, it should be noted that First Property aims to invest approximately £10 million coupled with £40 million, provided by the Universities Superannuation Scheme (USS), in the UK property market. Ben Habib, who takes the post of chief executive officer at First Property, said that the increase in the institutional demand in UK property is very beneficial for the fund. He added that the company will also take advantage of the high yields and rents, even if they decrease within some time. Moreover, Mr. Ben Habib claimed that First Property holds a strong financial position in spite of the decreased level of revenues and pre-tax profits, reported earlier this year. As such, the share price for assets under management of the company has risen from £290 million in spring 2008 to £310 million this year. Also, the amount of assets under management rose. Finally, Mr. Habib declared that the company’s success on the UK property market is expected to occur as First Property has been rated number one performer on the property market of the CEE region by the International Property Databank (IPD).