Palace Capital secures lease renewal on Farnborough Job Centre

Commercial property investment company Palace Capital announced on Monday that it has renewed the lease on Princeton House, on Victoria Road in Farnborough, Hampshire.

The AIM-traded firm said Princeton House, which was acquired as part of the Property Investment Holdings portfolio in August 2014, is an 8,300 square foot office building, currently used as a Job Centre, and was let to Trillium Prime Property Group until 1 April 2018 at a rent of £75,299 per annum.

A lease renewal had now been concluded with the Secretary of State for Communities & Local Government, the company explained.

The new lease is for a term of 10 years from 2 April 2018, with an option to break at the end of the fifth year.

Palace said the rent was £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 fifth year, there would be an upward only rent review based on the increase in the consumer price index.

“We are delighted that we have renewed this lease in a growth town to an undoubted covenant,” said chief executive Neil Sinclair.

“This demonstrates how, by using our active management skills, we continue to enhance Palace Capital's income.”