Palace Capital PLC - New £26.5m secured facility agreed
Palace Capital (LSE: PCA), the Main Market listed property investment company that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, is pleased to announce that, through its subsidiary Palace Capital (Developments) Limited, the Company has signed a new £26.5 million loan facility with Barclays Bank Plc. Alongside the Company's existing cash resources, the facility will be used to part finance the mixed-use development of Hudson Quarter, York; consisting of 127 residential apartments, 34,500 sq ft of offices, 5,000 sq ft of commercial space and car parking in central York.
Palace Capital acquired the two-acre site, on which the former 100,000 sq ft Hudson House office building stood, as part of the corporate acquisition of the Sequel Portfolio from Quintain Ltd in 2013.
The Company worked closely with the City of York Council to secure a planning consent in August 2017 to demolish the existing 1960s office blocks and to replace them with the Hudson Quarter development. Demolition was completed in December 2018 and construction work is due to start on site this month with completion of the scheme anticipated in early 2021.
The new facility will be drawn down during the construction phase of the project and repaid with the proceeds from residential sales.
Commenting, Stephen Silvester, Finance Director of Palace Capital said:
"I am pleased we have arranged this facility with Barclays Bank at a competitive rate, through their Leeds office, and we are looking forward to working with them on this project. We have sought throughout to engage with the local community, local authority and now a local Yorkshire-based real estate team from Barclays."
Commenting , Neil Sinclair, Chief Executive of Palace Capital, said:
"We are pleased to have secured funding for this exciting new scheme located centrally in York, within the old historic walls of the city and only 1 minutes' walk from the train station which can be reached from London in under 2 hours. We are confident that the development will attract strong interest from potential residential purchasers as well as commercial and office tenants."