First Property takes Maestro in Cluj

UK investment fund First Property Group, together with a number of partner investors, has purchased the Maestro Business Center office building in Cluj-Napoca, according to

The 6,845 sqm building is fully leased to tenants that include Steelcase, IBM, PwC, Hewlett Packard and Global Convergence.

Commenting on the new investment, Ben Habib, the CEO of First Property Group, stated: “I am very pleased by the investment made by our clients and ourselves in this well located office building in the centre of Cluj-Napoca. Cluj-Napoca is a fast growing city which is supportive for both rents and capital values.”

The net operating income generated by the property is around EUR 875,000 per annum and the property was acquired at a yield on purchase costs of around 9.4 pct per annum. The weighted average unexpired lease term is around 3 years. The investment was funded by a combination of equity and bank debt. The equity component came to just over EUR 3 mln, of which the group invested around EUR 510,000, pari passu with other investors. The forecast annual pre-tax profit is EUR 550,000 per annum, of which the Group’s share after tax would be EUR 85,000 per annum, which would equate to a post-tax rate of return on equity of 16 pct per annum.


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