REG - Palace Capital PLC - Property Acquisition <Origin Href="QuoteRef">PCA.L</Origin>

Palace CapitalAnnouncement

22/08/2016 09:59

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"
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Date: 22 August 2016
For further information contact:
Palace Capital plc
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Nick Naylor / James Reeve
Tel. +44 (0)20 3328 5656
Arden Partners plc (Joint Broker)
Chris Hardie / Ciaran Walsh
Tel. +44 (0)207 614 5917
Capital Access Group (Financial PR)
Simon Courtenay / Jessica Bradford 
Tel. +44 (0)20 3763 3400

This information is provided by RNS
The company news service from the London Stock Exchange
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