Palace Capital converts to a REIT and confirms key letting at Northampton leisure scheme – Property Week
As promised in this years annual results, Palace Capital has provided HMRC with notice to join the UK REIT regime from 1st August 2019. The first dividend as a UK REIT is due to be paid in December 2019.
Chairman Stanley Davis said: “It is clear that Palace Capital has now reached a certain scale where the benefits of converting to a REIT are tangible and we are convinced that this is the best course to support our total return strategy as the company continues to grow.”
Furthermore, Palace Capital announced that 23,500 sq ft of vacant space at its Sol Northampton leisure scheme has been let to Gravity Fitness on a 15-year lease.
Gravity Fitness, based in Castleford, Yorkshire, is an expanding leisure operator that provides indoor family activities such as trampolining, bowling, indoor golf and wall climbing. The Sol branch will be its tenth operation.
The lease agreed with Gravity Fitness is at an initial rent of £141,000 per annum, with a minimum increase every five years based on the changes to RPI plus a percentage of turnover, once it reaches £1.0 million p.a. The deal includes a six month rent free period and a contribution to fit-out costs.
This letting represents 53% of the total vacant space.