Sale of property in Maldon, Essex for £3.9m

RNS Number : 5402Y

Palace Capital PLC

06 March 2017

 

Palace Capital plc

("Palace Capital" or the "Company")

                 PALACE CAPITAL SELLS 75,000 SQ FT PROPERTY IN MALDON AT 66% PREMIUM TO BOOK VALUE

Palace Capital, the property investment company that focuses on commercial property outside London, today announces that it has sold the ICS Buildings in Maldon, Essex, for £3.9 million to the MCR Property Group Limited. The sale price is £1.56 million above the last independent valuation of the property as at 30 September 2016.

The ICS Buildings were part of the Sequel Portfolio acquired from Quintain plc in October 2013. They comprise a listed office building and a warehouse building with a total net area of c. 75,000 sq ft. The buildings are currently let to Rockwell Automation until June 2017 at a rental income of £375,000 per annum exclusive.

On 16 December 2016, the Company announced that Rockwell had signed a lease extension for a term of 10 years from June 2017, with mutual breaks in June 2020 and June 2024. The initial rental income will remain at £375,000 per annum exclusive and a rent review has been agreed as at June 2022, indicating a rent of not less than £394,128 per annum.

Palace Capital had also previously announced on 12 September 2016 that it had sold 4 & 5 Hall Road adjoining the ICS Buildings for £1.0 million.

Parkdales acted for Palace Capital and Neil Frais Kelly acted for MCR Property Group Limited.

Neil Sinclair the Chief Executive of Palace Capital commented:

"Following on from our sales announced on 24 February 2017, this is another example of our brand of active management enabling us to recycle our capital and to create significant value for our shareholders. This property had limited potential and, being uncharged, it enables us to invest the monies to be received in more suitable and strategic income producing opportunities."

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Date: 06 March 2017

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)

Scott Fulton / Jessica Bradford

Tel. [phone]

 

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