PALACE CAPITAL PLC ("Palace Capital" or the "Company")
SIGNIFICANT NEW LETTING IN BRISTOL
Palace Capital, the property investment company that focuses on commercial property outside London, announces an important letting in Bristol.
The Company holds a long leasehold interest from Bristol City Council at Stratton House, Cater Road, Bishopsworth, Bristol. Stratton House, which was acquired from Quintain Estates & Development PLC as part of the Sequel Portfolio acquisition in October 2013, comprises 26,140 sq. ft. of office space (over which the lease was renewed for five years by Balfour Beatty Group in June 2014 at a rental of £162,500 per annum, exclusive). It also has 54,620 sq. ft. of warehouse space which was let to Computershare Ltd ("Computershare") until February 2016 at a rental of £190,000 per annum, exclusive.
Computershare has now surrendered the remainder of its lease and a new lease has been signed by Palace Capital with Wincanton Holdings Ltd ("Wincanton"). This expires in February 2031 at an initial rental of £190,000 per annum, exclusive until February 2016 reducing to £110,831 per annum, exclusive until February 2018 and then reverting to £190,000 per annum, exclusive. Wincanton has an option to break in February 2026 and the lease includes rent reviews during the fifth and tenth years to the greater of the market rental value or a 2.5% per annum compound increase (which equates to £214,968 per annum at the first rent review).
Neil Sinclair, Chief Executive of Palace Capital, said
"Wincanton was a sub-tenant of Computershare and we are delighted to welcome such a quality company as direct tenants on a long lease. The active management of our portfolio means that not only do we have continuity of income for at least ten years, but also the prospect of a minimum uplift in rent at the fifth year review."
Date: 21 October 2015
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)20 7614 5917
Broker Profile (Financial PR)
Simon Courtenay / Harry Rippon
Tel. +44 (0)20 3763 3400