Palace Capital acquires One Derby Square in Liverpool
Palace Capital has acquired the freehold interest of One Derby Square in Liverpool for £14m, reflecting a 6.75% net initial yield.
The property has a total net floor area of 70,000 sq ft, comprising six retail units and one leisure unit on the ground floor and 47,500 sq ft of offices across four further floors. It currently produces a net income of around £1m per annum and is 96% occupied by tenants including Pret a Manger, Tesco, Medicash, Reed Specialist Recruitment and Brook Street (UK).
While most of the property has been recently refurbished, opportunities remain for active asset management.
Palace Capital has acquired the freehold interest of One Derby Square in Liverpool for £14m, reflecting a 6.75% net initial yield.
The property has a total net floor area of 70,000 sq ft, comprising six retail units and one leisure unit on the ground floor and 47,500 sq ft of offices across four further floors. It currently produces a net income of around £1m per annum and is 96% occupied by tenants including Pret a Manger, Tesco, Medicash, Reed Specialist Recruitment and Brook Street (UK).
While most of the property has been recently refurbished, opportunities remain for active asset management.
Neil Sinclair, chief executive of Palace Capital, commented: “Having been working hard assessing opportunities over the past year or so, and having rejected a number of investment opportunities that we felt would not deliver value to our shareholders, we believe that this earnings-enhancing acquisition validates our decision to remain patient.
“Our strategy focuses on city centre locations in thriving university towns and regional cities, particularly where permitted development and a lack of speculative development has reduced the office stock; in Liverpool, 1.15m sq ft of office space has been taken out of the market since 2014.
Mason Owen and Hamlins acted for Palace Capital, while CBRE and Bury & Walkers acted for the vendor.
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