LONDON (Alliance News) - Palace Capital PLC on Monday said it has acquired a retail and office building in Sutton, southwest London for GBP3.9 million.
It made the purchase by acquiring Dering Properties (Sutton) Ltd, the holder of the long lease of 46-54 High Street, Sutton.
The property, which is fully let and 21,248 square feet in area, is on the corner of High Street and Carshalton Road, about 200 metres from the Sutton railway station.
The three shops on the property are let to Foxtons, Sharps Bedrooms and Nirvana Beauty, while the office space is let to the Sutton Housing Partnership until June 2022, with the London Borough of Sutton guaranteeing the lease.
The property is held on lease from the Mayor and Burgesses of the London Borough of Sutton for a term of 150 years from January 1986 with rent reviews.
Rent is GBP42,906 per annum, with the property producing a gross income of GBP356,000 per annum. That gives a net income of GBP313,093 per annum and a yield of just under 8%.
"Sutton benefits from excellent links into Central London and is, in our view, a growth location," Chief Executive Neil Sinclair said in a statement.
"The property has excellent potential, and we will be exploring various opportunities in the medium term to create further value for our shareholders through active management," Sinclair added.
Palace Capital shares were up 2.0% at 375.00 pence on Monday shortly after midday in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Palace Capital (PCA)