A London property investment firm has agreed to acquire O&H Northampton Ltd, the owner of the city’s 190,000 sq ft leisure destination Sol Central.
Palace Capital has conditionally agreed to pay £20.7m for the business and will fund the acquisition through a share placing, which it hopes will raise about £20m.
Sol Central, located on Mare Fair, was built 13 years ago and comprises a ten-screen Vue Cinema, a 151-bed Ibis Hotel, two gyms, a beauty salon and a two-storey car park.
“Sol Central is well-located in central Northampton, with excellent transport links and a diverse range of tenants,” said Neil Sinclair, chief executive of Palace Capital.
“In addition to benefitting from a number of exciting developments nearby, the board is confident that the company’s active management should enhance the prospects for this asset, increasing income and adding capital value. The board looks forward to unlocking the property’s excellent potential to perform well under our ownership.”
Palace Capital’s share placing has been arranged by Arden Partner and Allenby Capital. The company will place 5.5 million new ordinary shares at a price of 360 pence each.