Palace Capital announced that the company contractually agreed the surrender of the occupational lease at Priory House, Gooch Street North, in Birmingham. Forensic Archive, the tenant, agreed to surrender its lease, which runs to December 2027 at a rent of £322,000 p.a., and pay effectively all rent due to expiry, amounting to £2.85m.
The contract for surrender is expected to complete on 31 May 2019, with Palace Capital continuing to be liable for empty rates and insurance.
The lease surrender will allow Palace Capital to progress with a business plan for the property, with all options to maximise shareholder value currently being assessed.
Neil Sinclair, Palace Capital’s CEO, commented: “To have secured vacant possession and received all rents due up front puts us in a strong position to be able to fully evaluate our options for this property, which include a potential refurbishment or redevelopment in conjunction with the freeholder, or alternatively the sale of our leasehold interest. The transaction also further boosts our cash balance giving us more flexibility in terms of investment opportunities.”