LONDON (ShareCast) - (ShareCast News) - Commercial property investment company Palace Capital announced on Tuesday that it has concluded its first letting at Boulton House, on Chorlton Street in Manchester, following its completion of the building's refurbishment.
The AIM-traded firm acquired Boulton House, which comprises 75,000 square feet of multi-let offices, in August 2016 for £10.6m, and the passing rents at that time were between £11.50 and £14.00 per square feet.

It said it subsequently embarked on a scheme of refurbishment on the common parts and 18,000 square feet of vacant offices, which was completed in February.

The company said it had now let 5,200 square feet on the seventh floor to the Broome & Wellington Group, on a 10-year lease with a rent review and mutual option to determine at the end of the fifth year.

Palace Capital would receive a rental income of £52,333 per annum over the first 18 months, rising to £100,915 per annum thereafter, until the rent review and mutual break at the end of the fifth year.

That equated to a headline rent of £17.25 per square foot per annum.

"We are delighted with this letting to the Broome & Wellington Group," said Palace Capital chief executive Neil Sinclair.

"We pressed ahead with the refurbishment as we had confidence in the resilience of the Central Manchester office market.

"We have received considerable interest in the remainder of the vacant space, comprising 12,800 square feet, including a number of inspections by prospective tenants."

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