(ShareCast News) – Palace Capital has completed the net £10.58m acquisition of Boulton House in Manchester, and is looking to improve the net yield it receives from rental income through refurbishing some of the building.
It added that a £6.02m new debt facility had been secured with Santander. Maturing in June 2020, this debt facility represented a 55% loan to value and was concluded at a margin of 2.25% over LIBOR.
Palace noted that of the buildings’ lettable 75,000 sq ft, about 13,500 sq ft of office space was vacant and would undergo a limited refurbishment prior to leasing.
“In our view, 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%,” said chief executive Neil Sinclair in a statement.