Property investment firm sells industrial estate as part of £34m deal
A property investment firm has sold off an industrial estate in Avonmouth.
Palace Capital has announced the successful sale of all but one of its industrial properties including the Point Four Industrial Estate.
The company said it has exchanged contracts for the sale of six industrial properties to Clearbell Property Partners IV LLP (Clearbell), a fund managed by Clearbell Capital for a cash consideration of £34m.
Completion of five of the properties is expected later this month with the sixth property expected to complete in early July.
The six properties, which generate annual rental income of £2.2m, are Bone Lane, Newbury; Courtauld House, Coventry; Saxon House, Kettering; Point Four Industrial Estate, Avonmouth; Black Moor Road, Verwood; and Clayton Industrial Estate, Burgess Hill.
Palace intends to use the proceeds from the sale to reduce the company’s debt.
Palace Capital’s strategy is to focus on maximising cash returns to shareholders, whilst continuing to remain mindful of consolidation in the real estate sector.
Steven Owen, interim executive chairman said: “The disposal of the majority of the company’s industrial portfolio is a significant step forward in reducing its debt and LTV and means we can remain focussed on maximising cash returns to shareholders.
“The company is in a strong financial position and its low leverage provides it with the flexibility and optionality regarding the timing of further disposals and other strategic initiatives. The company has capitalised on the recent stabilisation and, in some cases, the recovery of pricing in the investment property market to sell and market for sale selected properties.”
