Letting of Fraser House, Staines

RNS Number : 0481Z

Palace Capital PLC

08 December 2014

 



Palace Capital plc

("Palace Capital" or the "Company")

Letting of Fraser House, Staines

Palace Capital plc, the AIM quoted property investment company focusing on the secondary commercial market outside London, announces that it has let Fraser House, Staines to Tornier UK Ltd ("Tornier").  Tornier is part of NASDAQ quoted Tornier NV, a leader in orthopaedic implant design and manufacture.

This is the first letting of space that was added following the £32 million acquisition of Property Investment Holdings Ltd ("PIH") that was completed in August.

Fraser House is a refurbished office building adjoining Staines Railway Station and comprises 6,700 sq ft on two floors.  The property has been empty since the middle of last year. On completion of the acquisition of PIH, Palace has made a determined effort to lease the building so as to increase the income from the PIH portfolio and reduce the irrecoverable expenditure associated with the running costs and empty rates liability.

The building has been let at a rent just below the quoting rent of £165,000 per annum and Tornier has taken a new full repairing and insuring lease for a term of ten years, with a tenant's option to break at the fifth year.  Tornier will commence paying rent on 1 July 2015.

Neil Sinclair, the Chief Executive of Palace Capital, said

"We are delighted to have let Fraser House to a company of the calibre of Tornier and so quickly after completing the PIH acquisition.  This letting will be very positive for us, as we will remove the drag of the irrecoverable outgoings.  Removing this liability and adding the rental income, this will see a cash flow benefit that will exceed £250,000 per year."

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Date: 08 December 2014

For further information, please contact:

Palace Capital plc	Tel. [phone]
Stanley Davis, Non-Executive Chairman
Neil Sinclair, Chief Executive
Allenby Capital Limited	Tel. [phone]
Nick Naylor, Corporate Finance
James Reeve, Corporate Finance
Arden Partners plc	Tel: [phone]
Christopher Hardie, Corporate Finance
Ciaran Walsh, Corporate Finance
Broker Profile (Financial PR)	Tel. [phone]
Simon Courtenay

 

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