Palace Capital PLC
17 Lease Renewals and Rent Reviews
PALACE CAPITAL SECURES 25.6% AVERAGE RENTAL UPLIFT ACROSS
17 LEASE RENEWALS AND RENT REVIEWS
Palace Capital plc (the “Company”), the UK REIT that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London, has completed 12 lease renewals and five rent reviews at an average of 3% above ERV. Altogether, the renewals and reviews have added £438,189 per annum to the previous passing rent on the 17 assets, reflecting a 25.6% uplift, and increased the portfolio WAULT to 5.2 years to break.
The renewals, which have been completed on 12 properties across all portfolio sub-sectors, include the 77,787 sq ft warehouse at Foleshill Enterprise Park in Coventry which is let to Brose Ltd, the major industrial equipment supplier whose clients include Jaguar Land Rover. The Company secured a more than 30% annual rental uplift on a five year lease from July 2019.
Five rent reviews were also concluded, including a 36% rental uplift with Rockwell Automation, the global industrial automation and information specialists who occupy 38,331 sq ft of office buildings at Kiln Farm in Milton Keynes, leased to December 2026.
Neil Sinclair, Chief Executive of Palace Capital commented,
“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.
“Generating income growth from our portfolio is part of our core strategy and also underpins our approach to capital allocation, including the significant commitments to our flagship development, Hudson Quarter, York but also new investment in our assets at Regency House, Winchester, Sol Northampton and St James' Gate, Newcastle-on-Tyne. We anticipate a positive return from these investments in the financial year commencing April 2020 and I look forward to providing a positive update on our progress at Hudson Quarter when we announce our interim results in November.”