Business
Acquisition
Acquisition.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \nRNS Number : 9219R Palace Capital PLC 14 March 2016 \n\n Palace Capital plc\n(\"Palace Capital\" or the \"Company\")\n \n£24.18m ACQUISITION OF BROAD STREET PLAZA, HALIFAX, WEST YORKSHIRE AND NEW £30 MILLION BANK FACILITY\nPalace Capital, the property investment company that focuses on commercial property outside London, announces that it has acquired the entire issued share capital of Gregory Projects (Halifax) Limited (the \"Target\"). The Target is a special purpose vehicle and is the owner of Broad Street Plaza, an award winning leisure development in Halifax, West Yorkshire. \nThe amount paid by Palace Capital reflects a freehold value of £24.18 million and the acquisition is an off market transaction. The consideration comprises: i) Palace Capital assuming the Target's existing facility with Barclays Bank of £15.2 million (on which the Target pays a margin of 2.75% over LIBOR); and ii) £9.0 million from Palace Capital's existing cash resources. The consideration is subject to adjustment, based on a completion balance sheet.\nBroad Street Plaza was completed in 2012 and is on an island site in the heart of Halifax opposite the bus station and Town Hall. It comprises circa 113,000 sq ft and a 429 space multi-storey car park and is producing a current net income of £1,780,000 per annum, rising through fixed rent increases to £1,940,000 per annum in 2017. There is only a small amount of vacant space and the vendors have guaranteed the rent, service charge and rates on this unit until it is let or for a maximum of two years. This represents an initial net yield of 7.25% rising to at least 7.9% in 2017 when rent reviews on a number of units also take place.\nBroad Street Plaza is let to a number of major tenants including JD Wetherspoon, Pizza Express, The Restaurant Group, Nando's, Mitchells & Butlers, Prezzo, TGI Friday's, Pure Gym, Vue Entertainment, Apcoa Parking and Calderdale & Huddersfield NHS Foundation Trust. The Weighted Average Unexpired Lease Term (\"WAULT\") is 15.07 years to break and 21.01 years to expiry.\nThe Company is assuming the existing bank facility with Barclays Bank which runs until October 2017 and is reducing by £200,000 per quarter. The Company may seek to replace this existing facility with a new longer term facility in due course.\n&nb...