23 September 2019
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.