Disposal of property

RNS Number : 9520C

Palace Capital PLC

01 July 2016

 

Palace Capital plc

("Palace Capital" or the "Company")

                                               PALACE CAPITAL SELLS SURBITON OFFICE INVESTMENT

Palace Capital, the property investment company that focusses on commercial property mainly outside London, announces that it has sold the freehold of Argent House & Argent Court, Hook Rise South, Surbiton, Surrey for £1.2million.  The sale price is £300,000 above book value of the property.

The property, which was built in 1990, comprises one 2 storey office building of approximately 12,500 sq ft and 6 two storey business units totalling approximately 15,000 sq ft, giving an aggregate floor area of 27,500 sq ft.

A long lease of Argent Court was granted in November 2013 for £800,000 and a long lease of one unit was granted in December 2013 for £270,000. Two other units have previously been sold off on long leases and the remaining two units are curently producing a net income of £76,100 per annum.  The lease of one of these units expires on 4 July 2016 and the lease on the other expires on 17 August 2016.

The property was acquired in October 2013 from Quintain Estates & Development as part of the Sequel Portfolio and are prominently located fronting the A3 Kingston By-Pass about three quarters of a mile south of the Tolworth Roundabout.

Neil Sinclair, the Chief Executive of Palace Capital, commented: "Contracts were exchanged and the sale completed yesterday. Notwithstanding the uncertainty created by the Referendum vote we will continue to recycle our capital, focussing on those properties where we consider that there is little opportunity for growth. Negotiations are continuing on selling other properties which are currently vacant and we will update shareholders in due course."

Cattaneo Commercial of Kingston acted for Palace Capital.

-ends-

Date: 1 July 2016

For further information contact:

Palace Capital plc

Neil Sinclair, Chief Executive

Stephen Silvester, Finance Director

Tel. [phone]

Allenby Capital Limited (Nominated Adviser and Joint Broker)

Nick Naylor / James Reeve

Tel. [phone]

Arden Partners plc (Joint Broker)

Chris Hardie / Ciaran Walsh

Tel. [phone]

Capital Access Group (Financial PR)

Simon Courtenay

Tel. [phone]

 

END

 

 

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