1 August 2019
Palace Capital plc
("Palace Capital" or the "Company")
PALACE CAPITAL LETS 23,500 SQ FT TO LEISURE OPERATOR AT SOL NORTHAMPTON
Palace Capital (LSE: PCA), the Main Market listed property investment company that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, has completed a 15 year lease of 23,500 sq ft with Gravity Fitness (Northampton) Ltd at its Sol Northampton leisure scheme. It follows the opening in June of Soo Yoga by former England Rugby International, Ben Cohen MBE and Kristina Rihanoff, the world finalist professional ballroom dancer who appeared on the BBC's Strictly Come Dancing, who signed a 15-year lease at the scheme in February. This latest letting represents 53% of the total vacant space.
Gravity Fitness, which is based in Castleford, Yorkshire, is an expanding leisure operator that provides indoor family activities such as trampolining, bowling, indoor golf and wall climbing. It has nine other locations across the UK including Bluewater in Kent, Castleford, Corby, Edinburgh, Glasgow, Hull, Maidstone, Milton Keynes and Norwich.
The lease agreed with Gravity Fitness is at an initial rent of £141,000 per annum, with a minimum increase every five years based on the changes to RPI plus a percentage of turnover, once it reaches £1.0 million per annum. The new activity centre, which will be in the space formerly occupied by Gala Casinos, is expected to open in October this year. The parent company, Gravity Fitness Ltd will be guaranteeing the terms of the lease until December 2024.
In line with its repositioning strategy for Sol Northampton, Palace Capital will provide a 6 month rent free period and contribute towards the fit out of the unit as it aims to continue to attract high quality tenants and to reinvigorate the leisure centre, which comprises over 200,000 sq ft within five minutes' walk of Northampton Railway Station.
Neil Sinclair, Chief Executive at Palace Capital commented:
"Gravity Fitness is an exciting British company. Having met the executive team and seen the operation in action, I am in no doubt that they will add considerable footfall to Sol Northampton, further broadening its appeal to a wide catchment. The opening of a family focused entertainment venue will complement our growing offer, which includes a Vue Cinema, Accor Hotel, Fitness for Less and Soo Yoga, as we continue to implement our tailored asset management plan to let the remaining 21,000 sq ft."
GCW, EJ Hales and Patrick Punch advised Palace Capital & Savills represented Gravity Fitness.
For further information, contact:
FTI Consulting (Financial PR)
Claire Turvey / Methuselah Tanyanyiwa
Tel. +44 (0)20 3727 1000
About Palace Capital plc (www.palacecapitalplc.com):
Palace Capital plc (LSE: PCA) is a Main Market listed property investment company that has a c. £280 million diversified portfolio of UK regional commercial property. The Company maintains a disciplined investment strategy focused on towns and cities outside of London that are characterised by thriving local economies and strengthening fundamentals. Within those locations, the highly experienced management team selects assets that provide opportunity to drive both capital value and long-term rental income through tailored active asset management programmes, ultimately delivering attractive shareholder returns.