LONDON (Alliance News) - Palace Capital PLC on Thursday said it has let the 13 flats above The Copperfields shopping centre in Kent to Dartford Borough Council.
Property investment company Palace Capital bought The Copperfields in October 2013, with the site consisting of a small shopping centre and offices above.
However, shortly after buying, Palace Capital said the tenant occupying around 10,000 square feet of the office space served notice to vacate, and Palace Capital then secured consent to convert the first floor offices into self-contained flats.
On Thursday, the group said a GBP2.3 million building contract has now been completed, and Dartford Borough Council has agreed to take possession of all 13 flats on a 10-year lease.
The lease has no break clause and provides rental income of GBP146,500 per annum to Palace Capital, inclusive of a service change, rising annually by 2.5%.
Dartford Borough Council's rent-free period on the flats will run until mid-April in lieu of works they will be carrying out to the flats.
"After meeting senior officers of the council to discuss their plans for the town, we placed a building contract to convert the vacant offices into flats. As a result, we have secured a gilt-edged tenant in a growth location, eliminated empty rate payments on the vacant offices and have secured an income stream until 2027," said Palace Capital CEO Neil Sinclair.
Shares in Palace Capital were untraded on Thursday, having last traded at 362.30 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Palace Capital (PCA)