18 April 2018
Palace Capital PLC
("Palace Capital", the "Company" or the "Group")
Palace Capital leases Milton Keynes Office Building
Palace Capital, the property investment company that focuses on commercial property predominantly outside London, announces that it has let Unit 2 (known as Solaris House) located in Pitfield, Kiln Farm, Milton Keynes.
This property, comprising 14,500 sq ft, became vacant in 2016 following which the Company took the decision to refurbish the building. Solaris House has now been let to Monier Redland Ltd, part of BMI Group, for a term of 10 years from May 2018 without break with provision for a rent review at the 5th year. The headline rental is £240,000 per annum exclusive (which equates to £16.55 per sq. ft.) although £120,000 per annum is payable until September 2021 in lieu of a rent free period.
Solaris House formed part of the Sequel Portfolio which Palace Capital acquired in October 2013. The two adjoining office buildings, comprising 38,300 sq ft, were refurbished to the same specification by the Company in 2014 and are currently let to Rockwell Automation ("Rockwell") until December 2026 with provision for an upward only rent reviews in December 2018 and December 2022. Rockwell is currently paying rent equivalent to £10.40 per sq. ft..
Neil Sinclair the Chief Executive of Palace Capital commented;
"We are delighted with this letting to a company of the calibre of Monier Redland, a clear vindication of our decision to refurbish the building. It sets the tone for the forthcoming rent review with Rockwell."
Date: 18 April 2018
For further information, contact:
Palace Capital plc
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Arden Partners plc (Joint Broker)
Chris Hardie / Ciaran Walsh
Tel. +44 (0)207 614 5917
Allenby Capital Limited (Joint Broker)
Nick Naylor / James Reeve / Asha Chotai
Tel. +44 (0)20 3328 5656
Capital Access Group (Financial PR)
Tel. +44 (0)20 3763 3400
About Palace Capital plc (www.palacecapitalplc.com):
Palace Capital is a UK property investment company admitted to trading on the London Stock Exchange plc's main market (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 per share and a 16.0% increase in dividends.