First Property Group (FPO) has unconditionally exchanged contracts for the sale of the office property it acquired in Woking earlier this year.
The property was acquired at a total cost of GBP2.46m and the sales price agreed is GBP6m in cash, generating a gross profit for the group of some GBP3.1m, after the deduction of sale costs.
Completion of the sale is due to take place on 18 December 2013.
Proceeds of the sale will be used by the group to invest in the development of its business.
Following the sale the group’s cash balance will be approximately GBP14.0m, of which some GBP7.2m is held within Fprop Opportunities (FOP). The cash balance of the group at 30 September 2013 was GBP10.6m.
Ben Habib, chief executive of First Property Group, says: “This has been the group’s first development project in the UK since 2003. Having secured planning permission for conversion to residential use, we are pleased to be able to realise a significant profit on our investment, which demonstrates the group’s flexibility and breadth of expertise across the spectrum of property markets.”