Palace Capital plc
("Palace Capital" or the "Company")
PALACE CAPITAL ANNOUNCES NEW LETTING IN BURGESS HILL,
REMOVING LAST SIGNIFICANT VOID IN PIH PORTFOLIO
Palace Capital, the property investment company that focuses on commercial property outside London, announces that it has let Unit 3 on the Clayton Manor Industrial Estate, Burgess Hill, West Sussex.
The property was built in the 1980s and comprises a net lettable area of approximately 15,600 sq ft, of which 50% is warehouse and 50% offices. Burgess Hill is located 11 miles north of Brighton and 21 miles south of Gatwick Airport, and is a thriving industrial area.
The entire property has been let for fifteen years to Polar Audio Ltd, the exclusive UK distributor for some of the best known names in the professional audio market. The initial rent is £120,000 per annum. The full repairing and insuring lease has a provision for rent review and a tenant's option to break at the fifth and tenth years.
This Unit became vacant in December 2014 and, using monies from a dilapidation settlement with the previous tenant, works were carried out to the satisfaction of the new tenant.
The building formed part of the Property Investment Holdings ("PIH") portfolio acquired by Palace Capital for £32 million in August 2014. Following this letting and recent sales in Burgess Hill and Reigate, the running yield on cost for the portfolio is now at c. 8.5%. The only remaining void in the original PIH portfolio is a small office floor at Ovest House, West Street, Brighton.
Neil Sinclair, Chief Executive of Palace Capital, said:
"This is a great letting and continues our strategy of rigorous active management right across the whole portfolio. Not only does it increase the Group`s rental income, but we will also not bear any empty rates liability, which would have otherwise amounted to approximately £50,000 per annum."
Date: 28 August 2015
For further information contact:
Palace Capital plc
Stanley Davis, Non-executive Chairman
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
Broker Profile (Financial PR)
Simon Courtenay / Harry Rippon Tel. +44 (0)20 7448 3244