Palace Capital PLC Disposal of property (8323O)
24 August 2017 - 4:00PM
UK Regulatory
TIDMPCA
RNS Number : 8323O
Palace Capital PLC
24 August 2017
Palace Capital plc
("Palace Capital" or the "Company")
Palace Capital disposal of property
Palace Capital plc, the property investment company that focuses
on commercial property outside London, announces that it has sold
the long leasehold interest in Stratton House, Cater Road, Bristol
to the MCR Property Group for a consideration of GBP2.25 million,
equivalent to current book value.
Erected in the 1970s, the property is part of the original
Sequel Portfolio acquired from Quintain in 2013. It comprises a
warehouse unit of 52,600 sq ft let to Wincanton Holdings Ltd for a
term of 15 years expiring in February 2031. This contains a break
option in February 2026 at a current rental of GBP110,831 per annum
until February 2018 when it increases to GBP190,000 per annum
exclusive. There is a rent review in February 2021 and February
2026 if the lessee does not break. The property also includes a
vacant office/industrial unit of 25,100 sq ft making a total of
77,700 sq ft. The latter was originally let to Balfour Beatty but
it vacated the unit in June 2017.
The property is held on lease from Bristol City Council for a
term of 125 years from April 1983 at a current rent of GBP39,480
per annum, subject to 5 yearly reviews to 14% of open market
value.
Neil Sinclair Chief Executive of Palace Capital commented;
"We are very pleased to have sold this property at book value.
Following the departure of a key tenant, the economic rationale for
our continued investment was low. As has been the case throughout
the last 12 months, Palace Capital has demonstrated again that it
is capable of recycling its capital quickly and at no detriment to
its net asset value."
Date: 24 August 2017
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
Tel. +44 (0)20 3763 3400
About Palace Capital plc (www.palacecapitalplc.com):
Palace Capital is a UK property investment company admitted to
trading on the AIM Market of the London Stock Exchange (LSE: PCA).
The Company is not sector specific and looks for opportunities
where it can enhance the long-term income and capital value through
asset management and strategic capital development in locations
outside London. In its last reported financial year, Palace Capital
produced a 20.0% increase in adjusted profit before tax, a 7.0%
uplift in EPRA NAV and a 16.0% increase in dividends.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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