LONDON (Alliance News) - Property investor Palace Capital PLC on Monday said it has acquired Gregory Projects (Halifax) Ltd for GBP24.2 million to get its hands on the Broad Street Plaza development in Halifax, West Yorkshire.
Palace will pay the consideration via an off-market transaction to buy Gregory Projects, a special-purpose vehicle which owns the Broad Street Plaza leisure development. Broad Street Plaza was completed in 2012 and is located in the centre of Halifax. It produces an annual rent of GBP1.8 million, which will rise to GBP1.9 million in 2017.
In addition, Palace has entered into a GBP30.0 million, five-year lending facility with National Westminster Bank, comprising a GBP10.0 million fixed tranche and a GBP20.0 million revolving portion.
"Palace Capital is delighted to announce another significant acquisition of a major regional leisure scheme. Broad Street Plaza was chosen by The Variety Yorkshire Property Awards in 2012 as the Development of the Year. This is a well located leisure scheme with a superb quality of tenants on good leases with continuity of income for an average of at least fifteen years," said Palace Chief Executive Neil Sinclair.
Palace shares were down 2.3% to 325.00 pence early Monday, having briefly jumped to 334.00p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Palace Capital (PCA)