16th Jun 2014 09:15
LONDON (Alliance News) - Property investment business Palace Capital PLC Monday said it has renewed two office leases with Rockwell Automation Ltd for a combined GBP398,916 per year in rent, unchanged from the company's previous contract, but it will be required to invest in refurbishments.
The two office buildings in Milton Keynes, which total 38,335 square feet, were let to Rockwell until December 2014 at a combined rental of GBP398,916 a year. These leases have now been surrendered.
AIM-listed Palace has agreed to refurbish both office buildings, which will require an investment of around GBP2.5 million through its own resources. Terms have been agreed with a contractor, and works are expected to start imminently and due to be completed by the end of the year.
Whilst the refurbishment is being undertaken, Rockwell will continue to use part of the offices under "agreements to lease". When the refurbishment is completed, they will take new full repairing and insuring leases on both office buildings. These leases will be for a term of 12 years without a break with provision for upward-only rent reviews at the end of the fourth and eighth years.
The rent will be GBP248,283 and GBP150,633 a year respectively for the buildings, which equates to the combined rent previously paid by Rockwell of GBP398,916.
Palace Capital shares were quoted down 0.8% at 260.00 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Palace Capital