Property Acquisition

RNS Number : 7243H

Palace Capital PLC

22 August 2016

 

Palace Capital plc

("Palace Capital" or the "Company")

PALACE CAPITAL COMPLETE MANCHESTER ACQUISITION

Palace Capital plc, the property investment company that focusses on commercial property mainly outside London, confirms that it has now completed the acquisition of Boulton House, Chorlton Street, Manchester. Boulton House is a 75,000 sq ft multi-let 1970s office building, the acquisition of which was first announced by the Company on 14 June 2016.

The net price paid by the Company was £10.575 million and a new debt facility of £6.022 million has been secured with Santander. Maturing in June 2020, this debt facility represents a 55% loan to value and has been concluded at a margin of 2.25% over LIBOR.

13,500 sq ft of office space is currently vacant on which Palace will carry out a limited refurbishment prior to letting.

Neil Sinclair, the Chief Executive of Palace Capital, commented:

"The building currently produces a net rental income of £625,000 per annum rising to £775,000 per annum when the current rent free periods expire. In our view, once we have completed the works and the vacant offices are let, we should receive a net yield of circa 8.5% and a return on equity in excess of 13%. Having regard to the medium term development potential we are delighted with this purchase"

-ends-

Date: 22 August 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 / Jessica Bradford

Tel. [phone]

 

END

 

 

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