9th Jun 2014 10:08
LONDON (Alliance News) - Palace Capital PLC Monday said it has agreed a new lease on an industrial unit in Coventry with existing sub-tenant Brose Ltd, a deal that will bring in GBP325,000 in rent a year.
In a statement, Palace Capital said the initial term of the lease has been set at five years, with an option to renew it for a further five years.
Brose, which is part of a German automobile components group, is expanding in Coventry as it launches new products for customers including Jaguar Land Rover and Nissan.
The industrial unit, known as Courtauld House, forms part of a complex on the Foleshill Industrial Park in Coventry, which Palace Capital acquired as part of the Sequel portfolio in October 2013. It was previously let to Bowater Building Products, which recently paid Palace a rent penalty equivalent to four months after exercising a break clause in the existing lease.
Palace Capital said that an 18,000 square foot office building on the same site will become vacant in August, even though the current tenant is liable for rent until February 2015. It is being refurbished by the existing tenant and marketing to new tenants will begin in early September 2014.
"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," Managing Director Neil Sinclair said in a statement.
Palace Capital shares were Monday quoted at 262.50 pence, untraded.
By Samuel Agini; [email protected]; @samuelagini
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