Palace Capital plc
("Palace Capital" or the "Company")
PALACE CAPITAL EXTEND LEASE OF 75,000 SQ FT IN MALDON, ESSEX
Palace Capital, the property investment company that focuses on commercial property outside London, today announces that it has signed a significant lease extension with Rockwell Automation ("Rockwell") in Maldon, Essex.
The ICS Buildings in Maldon were part of the Sequel Portfolio acquired from Quintain Estates and Development plc in October 2013. They comprise a listed office building and a warehouse building with a total net floor area of c. 75,000 sq ft. The buildings are currently let to Rockwell until June 2017 at a rental of £375,000 per annum, exclusive. Rockwell has signed a lease extension for a term of 10 years from June 2017 with mutual breaks in June 2020 and June 2024. The initial rental will remain at £375,000 per annum, exclusive and the Company has agreed a rent review in June 2022 indicating a rent of not less than £394,128 per annum, exclusive.
Palace Capital previously announced on 12 September 2016 that it had sold 4 & 5 Hall Road adjoining the ICS Buildings for £1.03 million; £0.44 million above the book value as at 31 March 2016.
Neil Sinclair, the Chief Executive of Palace Capital, commented:
"We are delighted to have concluded this transaction with Rockwell Automation, which is also a tenant in two of our office buildings in Milton Keynes. The lease extension ensures continuity of income from these assets until at least June 2020. This is another example of Palace's focus on maintaining and in time growing the income from our property portfolio in order to generate value for shareholders."
Date: 16 December 2016
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)207 614 5917
Capital Access Group (Financial PR)
Scott Fulton / Jessica Bradford
Tel. +44 (0)20 3763 3400