First Prop secures investment for Polish park from Oxbridge colleges

First Property Group’s secured €33m in funding to assist with its developments at the Krakow Business Park in Poland from investors including three Oxford and Cambridge university colleges.

The AIM traded property management firm said the investment in its Fprop Phoenix subsidiary from parties including Willis Towers Watson Partners Fund and Christ Church and St Catherine's College, Oxford and Christ's College, Cambridge, will be put towards making KBP “the best business park” in the Krakow area.

First Property Group now owns 23.4% of the Fprop Phoenix, the holding company for KBP, which is to be renamed ‘Eximius Park’, and stands to earn management fees of €0.36m per annum from the investment. The group's stake will be treated as an associate and will be held at cost plus associated expenses of £900,000 rather than at its market value.

The property currently consists of four class A office buildings with leasable area of 50,000 m2, half of which is vacant, and further room for additional development, which group chief executive Ben Habib said will allow the park to become a “home away from home” for tenants.

"Our plans include a new sports ground, park area, additional car parking, a free bus service for all tenants, a refurbished railway station with an improved frequent service to central Krakow (some 15 minutes away), new retail facilities, top of the range restaurants, a kindergarten and much much more,” said Habib.

As of 0854 BST, First Property Group’s shares were up 6.32% at 50.50p.