Palace Capital exchanged contracts worth £18.2m with the London Borough of Barnet for the sale 50 units, reflecting 97% of their book value. The 50 units, three of which were sold in February 2018 for £1.25m, are part of the 65 residential units acquired in October 2017 as part of the RT Warren (Investments) Ltd portfolio.
The 50 residential units are debt-free and uncharged, producing a gross income of £0.62m annually.
The sale of each unit will be complete when they become vacant with all the properties anticipated to be sold on or before 31 March 2019. The proceeds from the sales will be added to cash reserves to be used for new acquisitions that meet the company’s selective acquisition criteria.
Neil Sinclair, Chief Executive of Palace, said: “We have found an excellent buyer and achieved a very satisfactory price within 3% of our book value. We intend to market the remaining 10 units separately in early 2019. The sale of these units has always been one of our key action points on the Warren Portfolio and we are pleased to have succeeded in this regard.”