Earnings are set to grow again at Central Europe focused property fund manager First Property after a couple of years of being buffeted by economic headwinds.

"The core business has continued to develop throughout the period and our earnings are now set to grow again as we invest our new UK commercial property fund," said First Property's chief executive, Ben Habib.

"We expect the value of assets under management to increase by £100m or 30% over the next 12 to 24 months," Habib added.

The company said that the fund raising for its mandate to invest in income producing commercial properties in the UK on behalf of three pension funds was completed towards the end of the financial year and therefore fees from this contract have made little contribution to the year just ended.

So far First Property has acquired four properties on behalf of this fund, with an aggregate value of £21m, and there are a further five properties under offer with an aggregate value of an additional £20m.

The company's profit on ordinary activities before tax declined to £2.79m in the year to 31 March from £3.86m the year before, largely as a result of poor interest rates dampening its return on its cash balance, a reduction in earnings of First Property Services, and the absence of the payment of performance fees within First Property Asset Management.

Revenue eased to £10.4m from £11.2m a year earlier while assets under management dipped 3% to £300m from £310m.

Though absolute performance may have been depressed by the economic environment the company was quick to point out that it retained its ranking as the best performing fund manager versus the IPD CEE Benchmark, now for the four year period to 31 December 2009. It was also ranked as the best performing fund manager versus the IPD Polish Benchmark over the same period.

As the company rushed through a second interim dividend to beat the introduction of tax changes for high earners it has not declared a final dividend.

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