First Property Group, the Aim-listed asset manager, announced a rise in profits that it said justified its move out of the UK into eastern Europe. Financial Times

The group, which only has a small fraction of its assets in the UK, warned that the domestic commercial property market remained 'significantly overvalued' at current interest rates.

By contrast, the recent turmoil in credit markets had not affected Poland and Romania, where it is concentrated.

First Property increased its assets under management from £90m a year ago to £240m as of September 30. Of this, 85% was in Poland and 9% in Romania, with only 6% in the UK.

It is acquiring another £20m of assets in Poland. 'This is a smaller pipeline than we would ideally like but we remain judicious in our buying decisions,' it said.