Palace Capital PLC PALACE CAPITAL DISPOSES OF BIRMINGHAM ASSET (1257W)
09 Dicembre 2019 - 8:00AM
UK Regulatory
TIDMPCA
RNS Number : 1257W
Palace Capital PLC
09 December 2019
9 December 2019
PALACE CAPITAL PLC
("Palace Capital" or the "Company")
PALACE CAPITAL DISPOSES OF BIRMINGHAM ASSET AT 25% ABOVE BOOK
VALUE
Palace Capital (LSE: PCA) the Main Market listed real estate
investment company that has a diversified portfolio of UK
commercial real estate in carefully selected locations outside
London, has surrendered its short leasehold interest at Priory
House, Gooch Street North, Digbeth, Birmingham for a nominal sum of
GBP25,000, saving the Company approximately GBP170,000 per
annum.
The Company acquired the leasehold interest of this 63,000 sq ft
office building as part of the Sequel Portfolio acquisition in
October 2013 with Palace Capital paying GBP100 per annum in rent
until December 2027. Priory House was let to Forensic Archive Ltd
("Forensic") for the same lease term at a rental of GBP260,000 per
annum exclusive increasing on review to GBP322,000 per annum in
December 2016.
The Company announced on 7 May 2019 that it had accepted the
surrender of the lease held by Forensic for a payment of GBP2.85
million.
The Company has received GBP2.875 million less seven months
holding costs of GBP99,000, therefore it has effectively disposed
of its entire interest for GBP2.78 million which is 25% above the
GBP2.1 million book value as at May 2019.
Neil Sinclair, Chief Executive of Palace Capital commented:
"This is a strong example of our team's asset management skills.
On 7 May 2019 a significant sum was received from the tenant but
the crucial element was then to dispose of the leasehold interest
in this vacant building which was costing the Company, on an
annualised basis, approximately GBP170,000 largely in empty rates,
insurance and security. Moreover, by removing 63,000 sq ft of
non-core, vacant office space, our portfolio occupancy has
increased from 84% to 86%, with the remainder mostly comprising
tactical vacancies as we progress our value enhancing Capex
strategy."
For further information please contact:
PALACE CAPITAL PLC
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Broker
Numis Securities
Heraclis Economides / Oliver Hardy
Tel: +44 (0)20 7260 1000
Broker
Arden Partners plc
Corporate Finance: Paul Shackleton / Ciaran Walsh / Daniel
Gee-Summons
Corporate Broking: James Reed-Daunter
Tel: +44 (0)207 614 5900
Financial PR
FTI Consulting
Claire Turvey / Methuselah Tanyanyiwa
Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com
About Palace Capital plc (www.palacecapitalplc.com)
Palace Capital plc (LSE: PCA) is a UK REIT that has a GBP275.8
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 select
assets that provide opportunities to drive both capital value and
long-term rental income through tailored active asset management
programmes ultimately delivering attractive shareholder
returns.
www.palacecapitalplc.
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END
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