LONDON (ShareCast) - (Sharecast News) - Property fund manager and investor First Property announced on Wednesday that its subsidiary E and S Estates has secured a loan of €1.7m.

The AIM-traded firm said the loan was secured against a supermarket located in Praga, a suburb of Warsaw, valued at €3.36m.

First Property Group owns 88.5% of the shares in E and S Estates.

The company said the loan-to-value ratio was around 50%, with the forecast net income from the property expected to be €0.16m per annum after deducting the interest costs of the loan.

That equates to a rate of return on equity invested of around 9% per annum, based on the property's appraised value.

"Group cash following this refinancing and following the sale by E and S Estates of two properties, as announced on 7 December, amounts to some £8.5m," the board said in its statement.

At 1308 GMT, shares in First Property Group were down 4.38% at 24p.

Reporting by Josh White for Sharecast.com.

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