Palace Capital has completed the acquisition of Boulton House, a 75,000 sq ft office building in Manchester, for £10.6m.
The multi-let 1970s office building in Chorlton Street includes 13,500 sq ft of vacant space, which will be refurbished prior to letting.
Palace Capital has also secured a new £6m debt facility with Santander. Maturing in June 2020, the debt facility represents a 55% loan-to-value ratio and has been concluded at a margin of 2.3% over LIBOR.
Neil Sinclair, chief executive of Palace Capital, said: “The building currently produces a net rental income of £625,000 per annum, rising to £775,000 per annum when the current rent-free periods expire.
“Once we have completed the works and the vacant offices are let, we should receive a net yield of circa 8.5% and a return on equity in excess of 13%.”
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