Palace Capital PLC
("Palace Capital" or the "Company")
THE FORUM, EXETER NOW FULLY LET
Palace Capital, the property investment company that focuses on real estate outside London, today announces that its 39,000 sq. ft. office building known as The Forum, Barnfield Road, Exeter is now fully let.
The Forum was acquired from Quintain Estates as part of the Sequel Portfolio in October 2013 and at that time 10,300 sq. ft. on part of the second floor and the entire third floor had been vacant for some considerable time.
Strenuous efforts since then have been made to effect the letting of all of this space, which had proved difficult. In November 2015, the second floor, comprising 1,685 sq. ft., was let on a lease for five years with a break at the end of the third year.
The Company stated in its portfolio update on 2 November 2016 that, since Brexit, there has been increasing interest in its vacant properties and they have now concluded two lettings on the remaining space comprising the entire third floor. The lettings are to a firm of Chartered Accountants and to a firm of solicitors who have both taken 10 year leases with a rent review and break clause at the 5th year at an aggregate rental of £81,589 per annum, allowing for a six month rent free period.
The Company will therefore not only have the benefit of the income when the rent free periods expire in May 2017 but will have the immediate benefit of a cessation of empty rates and service charge shortfall of £110,718 per annum so that by May 2017, £192,307 per annum will be added to the net income.
Neil Sinclair, the Chief Executive of Palace Capital, commented "There are times when properties prove difficult to let but Exeter is fundamentally a prosperous city. Our brand of active management is to work diligently to let or sell our vacant space until the job is done. From May 2017, The Forum will produce an annual net income of £408,964 per annum and is a key part of our portfolio."
Date: 7 November 2016
For further information:
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)
Simon Courtenay / Jessica Bradford Tel. +44 (0)20 3763 3400