Palace Capital PLC New letting in Exeter (0224P)
14 November 2016 - 6:00PM
UK Regulatory
TIDMPCA
RNS Number : 0224P
Palace Capital PLC
14 November 2016
Palace Capital plc
("Palace Capital" or the "Company")
PALACE CAPITAL CONCLUDES SIGNIFICANT LETTING IN EXETER
Palace Capital, the property investment company that focuses on
commercial property outside London, announces that it has let the
former Polestar Building (a 113,000 sq ft industrial/warehouse) on
the Marsh Barton Trading Estate in Exeter.
The Company announced in its year end results that
administrators had been appointed to its tenant occupying the
Polestar Building, Polestar UK Print ("Polestar"), and that it was
endeavouring to negotiate a 12-month licence from June of this year
with the newly formed company that had purchased the assets of
Polestar. This was in order to provide continuity of income to the
Company pending a possible redevelopment of the property. However,
the newly formed company itself went into administration and the
assets of Polestar were then subsequently sold to a venture capital
group. This had the effect of a reduction in the value of this
property as at 31 March 2016 and was reflected in our full year
accounts.
Since early July 2016, the Directors have been in detailed
discussions with the new owners of Polestar about remaining in the
Polestar Building on a mutually acceptable basis.
Legal formalities have now been concluded with Wheaton's Exeter
Ltd, who have taken a new 10-year lease from 9 August 2016, with no
right to break, at an initial rental of GBP282,000 per annum
exclusive for the first 18 months, rising to GBP452,000 per annum
exclusive on 09 February 2018 until a rent review in August 2021,
when the rent will rise to no less than GBP485,900 per annum
exclusive.
Neil Sinclair, the Chief Executive of Palace Capital,
commented
"This is an excellent deal for Palace Capital. With the
administration of Polestar we were faced with not only a loss of
income but the added burden of empty rates after 6 months and
security, maintenance and insurance costs which could have affected
our profitability. Through our active management style we have
secured a new tenant on attractive terms.
"Our goal is always to sustain and ultimately increase our
income so that our shareholders benefit from an attractive yield
and capital growth."
-ends-
Date: 14 November 2016
For further information, contact:
Palace Capital plc
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Nick Naylor / James Reeve
Tel. +44 (0)20 3328 5656
Arden Partners plc (Joint Broker)
Chris Hardie / Ciaran Walsh
Tel. +44 (0)207 614 5917
Capital Access Group (Financial PR)
Scott Fulton / Jessica Bradford
Tel. +44 (0)20 3763 3400
This information is provided by RNS
The company news service from the London Stock Exchange
END
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