Business
Disposal of property
Disposal of property.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \nRNS Number : 8323O Palace Capital PLC 24 August 2017 \n\nPalace Capital plc\n(\"Palace Capital\" or the \"Company\")\n \nPalace Capital disposal of property\n \nPalace Capital plc, the property investment company that focuses on commercial property outside London, announces that it has sold the long leasehold interest in Stratton House, Cater Road, Bristol to the MCR Property Group for a consideration of £2.25 million, equivalent to current book value.\n \nErected in the 1970s, the property is part of the original Sequel Portfolio acquired from Quintain in 2013. It comprises a warehouse unit of 52,600 sq ft let to Wincanton Holdings Ltd for a term of 15 years expiring in February 2031. This contains a break option in February 2026 at a current rental of £110,831 per annum until February 2018 when it increases to £190,000 per annum exclusive. There is a rent review in February 2021 and February 2026 if the lessee does not break. The property also includes a vacant office/industrial unit of 25,100 sq ft making a total of 77,700 sq ft. The latter was originally let to Balfour Beatty but it vacated the unit in June 2017.\n \nThe property is held on lease from Bristol City Council for a term of 125 years from April 1983 at a current rent of £39,480 per annum, subject to 5 yearly reviews to 14% of open market value.\n \nNeil Sinclair Chief Executive of Palace Capital commented; \n \n\"We are very pleased to have sold this property at book value. Following the departure of a key tenant, the economic rationale for our continued investment was low. As has been the case throughout the last 12 months, Palace Capital has demonstrated again that it is capable of recycling its capital quickly and at no detriment to its net asset value.\"\n \nDate: 24 August 2017\n \nFor further information, contact:\n \nPalace Capital plc\nNeil Sinclair, Chief Executive\nStephen Silvester, Finance Director \nTel. +44 (0)20 3301 8331\n \nAllenby Capital Limited (Nominated Adviser and Joint Broker)\nNick Naylor / James Reeve\nTel. +44 (0)20 3328 5656\n \nArden Partners plc (Joint Broker)\nChris Hardie / Ciaran Walsh\nTel. +44 (0)207 614 5917\n \nCapital Access Group (Financial PR)\nScott Fulton\nTel. +44 (0)20 3763 3400\n \nAbout Palace Capital plc (www.palacecapitalplc.com):\n \nP...