Palace Capital extends lease on Essex property by 10 years

Property investment firm Palace Capital has extended its lease by 10 years on a property in Maldon, Essex with Rockwell Automation.

The ICS buildings, which comprise of a 75,000 square feet warehouse and office building, were let to Rockwell Automation until June 2017 at a rental price of £375,000 per year and this was extended by a further decade with mutual breaks in June 2020 and June 2024.

The £375,000 rental price will remain, but there will be a rental review in June 2022 and the company expects that to be no less than £394,128 per year.

The ICS buildings in Maldon were a part of the Sequel portfolio which was bought from Quintain Estates and Development in October 2013.

In September, the company sold two sites on Hall Road, which adjoins the ICS Buildings for £1.03, this was £440,000 above the book value as at 31 March.

Chief executive Neil Sinclair said: "We are delighted to have concluded this transaction with Rockwell Automation, which is also a tenant in two of our office buildings in Milton Keynes.

“The lease extension ensures continuity of income from these assets until at least June 2020. This is another example of Palace's focus on maintaining and in time growing the income from our property portfolio in order to generate value for shareholders."