Palace inks twenty-year lease extension with Aldi

Palace Capital has inked a 20-year lease with German discount grocer Aldi at its property in Gosport, securing a 17.4% uplift in rental income.

The Hampshire asset, which was added to Palace's portfolio in October 2017 as part of its £71.8m acquisition of RT Warren and its assets, is a 16,500 square foot supermarket site, originally let to Aldi for £247,800 per year.

However, as part of the revised lease terms, Palace and Aldi agreed upon an increased rental rate of £291,000 per annum, reflective of the long-term rental and capital growth opportunities originally identified by the company when it acquired the property.

Palace's chief executive Neil Sinclair, said: "When we acquired the RT Warren portfolio, which was the best portfolio we had seen in the UK property market for some time, we knew that it contained significant latent potential that we would be able to unlock with our asset management expertise, and this new deal is a strong example of that."

"We have increased our income and lease term to 20 years to a strong covenant which has a positive effect on the value of this property. We continue to actively asset manage the other properties within the RT Warren portfolio and look forward to updating the market on our progress in due course."

As of 1540 BST, Palace shares were flat on 304p.