Palace Capital plc ("Palace Capital" or "the Company")
3 January 2012
On 5 October 2011, the Company completed the reverse takeover of Hockenhull Estates Limited for £1,817,500 (subject to adjustment in accordance with the terms of the Acquisition Agreement), which was satisfied in cash at completion.
Palace Capital through its wholly owned subsidiary, Hockenhull Estates Limited, owns 9 properties in Cheshire of which five are located in Nantwich and four are located in Crewe.
One of the properties, 52 Beam Street, Nantwich was originally let on a lease expiring in June 2012 at a rental of £9,000 per annum. Prior to the completion of the reverse takeover, the tenant was in arrears of in excess of £8,000 which the previous owners had been unable to recover.
The Company is pleased to advise that in the short time that Hockenhull Estates has been owned by the Company not only have all the arrears plus costs been recovered and the lease surrendered but, notwithstanding market conditions, a new letting has been concluded. The new tenant who has two other units has taken a five year lease with a break clause at the end of the third year at an initial rental of £7,500 per annum exclusive for one year, rising to £8,500 per annum exclusive in the second year, £9,000 per annum exclusive in the third year rising at the beginning of the fourth year to £9,250 per annum exclusive. The new tenant will be trading as jewellers for the buying and selling of gold.
The Company will continue to actively manage its property portfolio for the benefit of shareholders.
Palace Capital plc
Neil Sinclair, Managing Director
Tel: +44 (0)20 7722 7603
Fairfax I.S. PLC
Katy Birkin/Ewan Leggat
Tel: +44 (0)20 7598 5368
Lehmann Communications plc
Tel: +44 (0) 20 7266 3020