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Palace Capital Rental Income Uplifted By Recent Reviews And Renewals

24th Oct 2019 13:07

(Alliance News) - Palace Capital PLC on Thursday said it added GBP438,189 to its annual rental income after a series of lease renewals and rent reviews at 17 properties.

The commercial real estate firm completed 12 lease renewals and five rent reviews, at an average of 3% above estimated rental value.

Palace said: "Altogether, the renewals and reviews have added GBP438,189 per annum to the previous passing rent on the 17 assets, reflecting a 26% uplift, and increased the portfolio weighted average unexpired lease term to 5.2 years to break."

The lease renewals included one completed on a 77,787 square feet warehouse at Foleshill Enterprise Park, Coventry. The asset is currently being let to Brose Ltd, an equipment supplier with a client book that includes Jaguar Land Rover Automotive PLC.

The rent reviews included a 36% rental uplift at 38,331 square feet of office building in Milton Keynes, currently let by industrial automation and information specialists Rockwell Automation Inc.

Palace Chief Executive Neil Sinclair said: "Through a combination of the quality of our assets and our skilled active management process, we have secured the retention of 12 tenants and at the same time delivered a sustainable increase in income to balance out our strategic investment in refurbishments and potential developments."

Shares in the company were 0.8% higher at 289.25 pence each in London on Thursday afternoon.

By Eric Cunha; [email protected]

Copyright 2019 Alliance News Limited. All Rights Reserved.


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