REG - Palace Capital PLC - New lease in Coventry <Origin Href="QuoteRef">PCA.L</Origin>

Palace CapitalAnnouncement

06/09/2014 02:01

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RNS Number : 0988J
Palace Capital PLC
09 June 2014 
 
PALACE CAPITAL PLC 
 
("Palace Capital" or the "Company") 
 
PALACE CAPITAL SIGNS SIGNIFICANT NEW LEASE WITH GERMAN AUTOMOBILE CONGLOMORATE
IN COVENTRY 
 
Palace Capital PLC, the AIM quoted property investment company, focussed on
investing in the UK secondary commercial property market outside London, today
announces a significant letting of an industrial unit in Coventry. 
 
Palace has let a 75,000 sq. ft industrial unit to Brose Limited, an existing
sub-tenant, on a new lease for an annual rent of £325,000.  The initial term
of the lease is for 5 years, with an option to renew for a further 5 years. 
Brose is part of a large German automobile components group that employs
22,000 people worldwide and in 2013 reported turnover of E4.7 billion.  In the
UK Brose is expanding in Coventry where it is launching new products for its
customers, including Jaguar Land Rover and Nissan. 
 
The industrial unit is known as Courtauld House and forms part of a complex on
the Foleshill Industrial Park in Coventry, which was acquired by the Company
as part of the Sequel portfolio  in October 2013.  The property was
constructed in 1999 and was let previously to Bowater Building Products who
recently exercised a break clause in their existing lease.  This exercise has
resulted in Bowater Building Products paying Palace a rent penalty equivalent
to 4 months.  As part of the existing lease agreement Bowater is complying
with a Schedule of Dilapidations to be paid by them. 
 
In addition to the industrial unit, Palace owns a modern 18,000 sq. ft office
building on the same site.  This office building will become vacant in August
2014, although the current tenant is liable for rent until February 2015. It
is currently being refurbished by the existing tenant and marketing to new
tenants will commence in early September 2014. 
 
Neil Sinclair, Managing Director of Palace Capital said: 
 
"We are delighted to sign a lease agreement with Brose for this large
industrial unit.  Coventry has a strong local economy and  is a buoyant hub
for the automobile industry and it is benefitting from the success of Jaguar
Land Rover in particular.  This lease demonstrates the active management of
the portfolio which we are undertaking." 
 
-ends- 
 
For further information contact: 
 
 Palace Capital Plc                     Tel. +44 (0)20 7722  7603  
 Stanley Davis, Non-executive Chairman                             
 Neil Sinclair, Managing Director                                  
                                                                   
 Allenby Capital Limited                Tel. +44 (0) 20 3328 5656  
 Nick Naylor, Corporate Finance                                    
 James Reeve, Corporate Finance                                    
 Arden Partners plc                     Tel: +44 (0) 20 7614 5917  
 Christopher Hardie, Corporate Finance                             
                                                                   
 Broker Profile (Financial PR)          Tel. +44(0) 20 7448 3244   
 Simon CourtenayTamsin Shephard                                    
 
 
This information is provided by RNS
The company news service from the London Stock Exchange