Palace Capital surrenders lease in Birmingham


Palace Capital said it had contractually agreed the surrender of the occupational lease at Priory House, Gooch Street North, in Birmingham.

The tenant, Forensic Archive, had agreed to surrender its lease, which ran to December 2027 at a rent of £322,000 per annum, and to pay effectively all rent due to expiry, totalling £2.85 million.

The contract for surrender would complete on 31 May, with the tenant continuing to pay all outgoings until then.

Palace Capital said it would continue to be liable for empty rates and insurance.

Forensic Archive vacated the building in 2012 and it had remained unoccupied since then.

The lease surrender would allow Palace Capital to move forward with a business plan for the property, with 'all options to maximise shareholder value currently being assessed'.

Chief executive Neil Sinclair securing vacant possession and receiving all rents due up front puts the company in a strong position to be able to fully evaluate its options for the property.

These could include a potential refurbishment or redevelopment in conjunction with the freeholder, or alternatively the sale of its leasehold interest.

'The transaction also further boosts our cash balance giving us more flexibility in terms of investment opportunities,' he said.

Related content

Palace Capital signs up Knights to occupy York office in 'record' deal

Property investor Palace Capital said it had set a record office rent in York city in the UK with the completion of a pre-let agreement...

Mon, 10/02/2020 - 07:32

Palace Capital completes sale of office asset in Birmingham

Palace Capital said it had surrendered its short leasehold interest at Priory House in Digbeth, Birmingham for a nominal sum of £25k.

The company said...

Mon, 09/12/2019 - 07:45

Palace Capital holds dividend steady as underlying performance improves

Property investor Palace Capital booked a lower first-half profit due to lower revaluation gains, though its underlying performance improved.

Net profit for the six months...

Tue, 19/11/2019 - 09:58

Palace Capital secures £40m credit facility

Property investor Palace Capital said it had secured a new secured £40m revolving credit facility from NatWest with a maturity of five years.

The new...

Wed, 07/08/2019 - 08:00

Palace Capital says interest in York development stronger than expected

Property group Palace Capital said interest in its Hudson Quarter development in York had been stronger than expected, with 22 apartments now reserved and deposits...

Fri, 12/07/2019 - 07:22