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23 September 2019

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First Property  – Sale of Property 

Share Price 45p

Mkt Cap £50m

Conflict Disclosure: I Hold

  • Update: Sale of a 50% interest in a polish property for Eur 44m, which represents a 13.4% premium to its book cost and a 10% premium to its market value per the independent assessment. Net cash receivable by the group is £16.7m taking the cash held by the company to 22p/share.
  • Valuation NAV increases by £3m. At historic cost NAV was 59.6p/share which will increase by 6% while at market value the NAV increases by a little less above the c65p at the end of September. With £602m of AUM yielding c 60 bps of management fees the fund management business is perhaps worth £12-£15m
  • Conclusion I am keen on the theme of these niche emerging fund managers which includes Mercia asset management, Arrow Global, and Intermediate Capital. For this one you can also buy it at a c27% discount to Nav.  Thankyou illiquid markets.