Palace Capital has let more than 10,000 sq ft of vacant space in assets acquired through its £40m purchase of the Sequel Portfolio from Quintain.
The AIM-listed firm has let 10,380 sq ft on the first and fifth floors at Hudson House, Toft Street, York, to Instant Managed Offices for occupation by Amey OWR.
The five-year lease at £110,000 pa gives the tenant the right to break after eight months and the company has the right to break after two years to allow for any potential refurbishment of the 103,000 sq ft office building.
Palace Capital is in the early stages of planning a major refurbishment of Hudson House, which is due to commence no earlier than the beginning of 2016.
It has also secured a short-term letting at Point Four Industrial Estate, Avonmouth, Bristol.
Furniture Village is taking 8,800 sq ft for 12 months with a six-month break clause and at an annual rental of £56,000 inclusive of service charge.The property is now fully let and the net rental income has increased to circa £407,000 pa with the irrecoverable expenditure reduced by circa £19,900 pa.
Managing director Neil Sinclair said: “Since acquiring the Sequel Portfolio in October, we have been focused on improving our cash flows by reducing the irrecoverable expenditure inherited with the portfolio.
“The lettings at Hudson House in York and the Avonmouth unit to Furniture Village are the first of many such initiatives that we anticipate will improve the portfolio’s performance, leading to improved shareholder returns.”
bridget.o’connell@estatesgazette.com
