Palace Capital PLC Acquisition of One Derby Square, Liverpool (3512L)
24 December 2018 - 6:00PM
UK Regulatory
TIDMPCA
RNS Number : 3512L
Palace Capital PLC
24 December 2018
24 December 2018
Palace Capital PLC
("Palace Capital" or the "Company")
Palace Capital acquires One Derby Square, Liverpool for
GBP13.975m
Palace Capital (LSE: PCA), the Main Market listed property
investment company that has a diversified portfolio of UK regional
commercial real estate in carefully selected locations outside of
London, has acquired the freehold interest of One Derby Square in
Liverpool for GBP13.975 million, reflecting a 6.75% net initial
yield.
This imposing property is situated in the heart of Liverpool and
has extensive frontages onto Lord Street and Castle Street, as well
as Derby Square. It has a total net floor area of 70,000 sq ft
comprising six retail and one leisure unit on the ground floor and
47,500 sq ft of offices across four further floors. It currently
produces a net income of circa GBP1.0 million per annum and is 96%
occupied by tenants with excellent covenants, including: Pret a
Manger, Tesco, Medicash, Reed Specialist Recruitment and Brook
Street (UK).
While most of the property has been recently refurbished,
significant opportunities remain for active asset management and
the Company will be working to a tailored plan to increase the
property's income and capital value in the years ahead.
Neil Sinclair, Chief Executive of Palace Capital, commented:
"Having been working hard assessing opportunities over the past
year or so and having rejected a number of investment
opportunities, which we felt would not deliver value to our
shareholders, we believe that this earnings-enhancing acquisition
validates our decision to remain patient.
"Our strategy focuses on city centre locations in thriving
university towns and regional cities, particularly where permitted
development and a lack of speculative development has reduced the
office stock; in Liverpool 1.15 million sq ft of office space has
been taken out of the market since 2014.
"One Derby Square is centrally located, close to the Liverpool
One development on Paradise Street, in a city which forms part of
the Northern Powerhouse and which is going through a very
considerable renaissance. We are pleased to make this investment
following the recent announcement of the sale of most of the Warren
residential portfolio for GBP18.2 million."
Mason Owen and Hamlins acted for Palace Capital whilst CBRE and
Bury & Walkers acted for the vendor.
For further information, contact:
Palace Capital plc
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Arden Partners plc (Lead Broker)
Paul Shackleton / Ciaran Walsh / Alex Penney
Tel. +44 (0)207 614 5900
Allenby Capital Limited (Joint Broker)
Nick Naylor / James Reeve / Asha Chotai
Tel. +44 (0)20 3328 5656
FTI Consulting (Financial PR)
Claire Turvey / Methuselah Tanyanyiwa
palacecapital@fticonsulting.com
Tel. +44 (0)20 7271000
This announcement contains information which, prior to its
disclosure, was inside information for the purpose of the Market
Abuse Regulation ("MAR").
About Palace Capital plc (www.palacecapitalplc.com):
Palace Capital plc (LSE: PCA) is a Main Market listed property
investment company that has a GBP283.3 million diversified
portfolio of UK regional commercial property. The Company maintains
a disciplined investment strategy focused on towns and cities
outside of London that are characterised by thriving local
economies and strengthening fundamentals. Within those locations,
the highly experienced management team selects assets that provide
opportunity to drive both capital value and long-term rental income
through tailored active asset management programmes, ultimately
delivering attractive shareholder returns.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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