Property investment firm signs £26.5m facility to deliver new mixed-use development

Palace Capital, the Main Market-listed property investment company, has signed a £26.5m banking facility to help deliver a mixed-use development in York.

Through its subsidiary Palace Capital (Developments), Palace Capital secured the new loan facility with Barclays Bank.

The facility will be used to part finance the mixed-use development of Hudson Quarter in York, which comprises 127 residential apartments, 34,500 sq ft of offices, 5,000 sq ft of commercial space and car parking in central York.

Palace Capital acquired the two-acre site, on which the former 100,000 sq ft Hudson House office building stood, as part of the corporate acquisition of the Sequel Portfolio from Quintain in 2013.

The company secured planning consent from York council in August 2017 to demolish the existing 1960s office blocks and to replace them with the Hudson Quarter development.

Demolition was completed late last year and construction work is due to start on site this month. The development is expected to be completed in early 2021.

The new facility will be drawn down during the construction phase of the project and repaid with the proceeds from residential sales.

Stephen Silvester, finance director of Palace Capital, said: “I am pleased we have arranged this facility with Barclays Bank at a competitive rate, through their Leeds office, and we are looking forward to working with them on this project.

“We have sought throughout to engage with the local community, local authority and now a local Yorkshire-based real estate team from Barclays.”

Neil Sinclair, chief executive of Palace Capital, added: “We are pleased to have secured funding for this exciting new scheme located centrally in York, within the old historic walls of the city and only 1 minutes’ walk from the train station which can be reached from London in under two hours.

“We are confident that the development will attract strong interest from potential residential purchasers as well as commercial and office tenants.”

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