Palace Capital surrenders lease in Birmingham

Writer, Stock Market Wire
Tuesday, May 7, 2019 - 07:57

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.

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