21st Oct 2015 09:54
LONDON (Alliance News) - Palace Capital PLC on Wednesday said it has made an "important letting" in Bristol, west England.
The company holds a long leasehold interest from Bristol City Council for Stratton House, Cater Road, Bishopsworth, Bristol.
Stratton House, which was acquired from Quintain Estates & Development PLC as part of the acquisition of the Sequel portfolio in October 2013, is made up of 26,140 square feet of office space. The lease for that office space was renewed for five years by Balfour Beatty Group in June 2014 at a rent of GBP162,500 per annum.
It also has 54,620 square feet of warehouse space which was let to Computershare Ltd until February 2016 at a rent of GBP190,000 per annum.
According to Palace Capital, Computershare has now surrendered the remainder of its lease. A new lease has been signed by Palace Capital with logistics firm Wincanton Holdings Ltd. It expires in February 2031 will have an initial rent of GBP190,000 per annum until February 2016. That amount then will fall to GBP110,831 until February 2018 before reverting again to GBP190,000.
Wincanton has an option to break in February 2026, and the lease includes rent reviews during the fifth and tenth years to the greater of the market rental value or a 2.5% per annum compound increase. That equates to GBP214,968 per annum at the first rent review.
"Wincanton was a sub-tenant of Computershare, and we are delighted to welcome such a quality company as direct tenants on a long lease. The active management of our portfolio means that not only do we have continuity of income for at least ten years, but also the prospect of a minimum uplift in rent at the fifth year review," Neil Sinclair, chief executive, said in a statement.
Palace Capital shares were up 1.7% at 373.75 pence Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Palace CapitalWIN.LQuadrise