Last checked at 24 Aug 2017 07:00
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 £2.25 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 £110,831 per annum until February 2018 when it increases to £190,000 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 £39,480 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.