LONDON (ShareCast) - (Sharecast News) - First Property Group has entered into a new lease with Teconnex over 6,300 square metres in the warehouse it owns in Tureni, Romania, it announced on Wednesday.
The AIM-traded company said the building was now fully leased, and should yield a net operating income of €0.25m in the year to 31 March 2021, up from €0.17m year-on-year.

It said the rent-free period granted to the tenant expires in the current financial year, following which the net operating income should rise to €0.33m per annum.

The property, located on the DN1/E81 road, totals 8,500 square metres of industrial and office space and is 23 kilometres south of Cluj-Napoca, and 11 kilometres north of the A3 motorway at Turda.

First Property described the area as seeing increased tenant and development interest.

It said Teconnex is a "world leader" in jointing technologies, designing and manufacturing V-clamps, pressed clamps and other joint technology solutions for the automotive, aerospace and industrial sectors.

It is headquartered in the UK, and distributes its products in its core market of Europe from its base in Tureni.

Teconnex is part of Hedadex - a privately-owned group of companies with more than ?100m in turnover.

The new lease followed the recent announcement that the group completed the sale of the CH8 office tower in Warsaw, which returned it around €19.6m in cash.

Both the lease and sale were successfully completed against the backdrop of the Covid-19 coronavirus pandemic, the board noted.

"Teconnex's decision to increase its commitment validates our view that the warehouse is a well located, first class property," said chief executive officer Ben Habib.

"We are very pleased to strengthen and extend our long-term partnership with a world class company like Teconnex at our warehouse in Tureni."

At 1513 BST, shares in First Property Group were flat at 38p.

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