Palace Capital plc
("Palace Capital" or the "Company")
Palace Capital concludes Manchester letting
Palace Capital, the property investment company that focuses on commercial property outside London, announces that it has concluded its first letting at Boulton House, Chorlton Street, Manchester following its completion of the building's refurbishment.
The Company acquired Boulton House, which comprises 75,000 sq ft of multi-let offices, in August 2016 for £10.6 million and the passing rents at that time were between £11.50 & £14.00 per sq ft. Palace Capital subsequently embarked on a scheme of refurbishment on the common parts and 18,000 sq ft of vacant offices and this was completed in February of this year.
The Company has now let 5,200 sq ft on the 7th floor to The Broome & Wellington Group on a 10-year lease with a rent review and mutual option to determine at the end of the 5th year. Palace Capital will receive a rental income of £52,333 per annum over the first 18 months, rising to £100,915 per annum thereafter, until the rent review and mutual break at the end of the fifth year. This equates to a headline rent of £17.25 per sq ft per annum.
Neil Sinclair, the Chief Executive of Palace Capital, commented: "We are delighted with this letting to the Broome & Wellington Group. We pressed ahead with the refurbishment as we had confidence in the resilience of the Central Manchester office market. We have received considerable interest in the remainder of the vacant space, comprising 12,800 sq ft, including a number of inspections by prospective tenants."
Date: 8 August 2017
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)
Tel. +44 (0)20 3763 3400
About Palace Capital plc:
Palace Capital is a UK property investment company admitted to trading on the AIM Market of the London Stock Exchange (LSE: PCA). The Company is not sector specific and looks for opportunities where it can enhance the long-term income and capital value through asset management and strategic capital development in locations outside London. In its last reported financial year, Palace Capital produced a 20.0% increase in adjusted profit before tax, a 7.0% uplift in EPRA NAV and a 16.0% increase in dividends.