Princeton House, which was acquired as part of the Property Investment Holdings portfolio in August 2014, is an 8,300 sq ft office building, currently used as a Job Centre, and is let to Trillium (Prime) Property Group Ltd until 1 April 2018 at a rent of £75,299 per annum.
A lease renewal has now been concluded with the Secretary of State for Communities & Local Government. The new lease is for a term of 10 years from 2 April 2018, with an option to break at the end of the 5thyear. The rent is £93,334 per annum exclusive for the first year rising to £140,000 per annum exclusive from year two until the end of the fifth year. If the lessee does not break at the end of the 5th year there is an upward only rent review based on the increase in the Consumer Price Index.
Neil Sinclair, Chief Executive of Palace Capital, commented:
“We are delighted that we have renewed this lease in a growth town to an undoubted covenant. This demonstrates how, by using our active management skills, we continue to enhance Palace Capital's income.”