Business
Disposal strategy continues with Aldershot sale
Disposal strategy continues with Aldershot sale.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8015T\n Palace Capital PLC\n 29 November 2021\n \n \n \n 29 November 2021\n \n Palace Capital PLC\n (\"Palace Capital\" or the \"Company\")\n \n Palace Capital disposal strategy continues with Aldershot sale\n \n \n Palace Capital (LSE: PCA) the Main Market property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office & industrial sectors, announces that it has sold 24 Blackwater Way, Aldershot to a private property company for £2.44 million. \n \n \n This reflects a 14% premium to book value and a more than 200% premium to the original investment at acquisition, equating to a 514% total return.\n \n \n Palace Capital acquired part of the property from Quintain in 2013 and subsequently purchased the adjoining long leasehold, applying its active asset management skills which resulted in a 20% increase in the annual rental income with an extended lease term. \n \n \n The property is an industrial building with a floor area of 28,000 sq ft and is let to BHW Automotive on a 10-year lease from September 2019 at £228,000 per annum. The freehold is held by Rushmoor Borough Council and let on a 125-year term from 2003, with provision for ground rent reviews every ten years. The next review is due in 2023 & the current ground rent payable is £47,000 per annum so the current net income is £181,000 per annum.\n \n \n Neil Sinclair, Chief Executive commented: \"This is one of the 15 mature buildings we earmarked for sale last summer under our strategic disposal plan, which aims to raise £30 million for redeployment into properties with stronger growth potential. \n \n \n \"The transaction takes the total sales so far under the plan to £21.3 million, with additional properties under offer, as we seek to reposition our portfolio and to recycle the capital into regional office and industrial properties that meet our criteria.\"\n \n \n Parkdales acted for Palace Capital.\n \n \n \n \n \n ENDS\n \n \n \n \n For further information please contact:\n PALACE CAPITAL PLC\n Neil Sinclair, Chief Executive\n Tel. +44 (0)20 3301 8331\n \n Broker\n Numis Securities\n Heraclis Economides / George Fry\n Tel: +44 (0)20 7260 1000\n \n Broker\n Arden Partners plc\n Corporate Financ...