Palace Capital has successfully negotiated a lease surrender at Priory House in Birmingham (63,000 sq ft), and will be receiving £2.85m in cash at the end of this month, officially ending the sublease (which was due to run to December 2027 at a rent of £322,000 p.a). We update our earnings forecasts (further detail later in this note) and highlight the dividend cover significantly improving to 1.08x in FY20E and 100bps reduction in our LTV in FY21E. Given the property has been uno
07 May 2019
Lease surrender in Birmingham
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Lease surrender in Birmingham
Palace Capital plc (PCA:LON) | 230 0 0.0% | Mkt Cap: 86.2m
- Published:
07 May 2019 -
Author:
Kunal Walia -
Pages:
7
Palace Capital has successfully negotiated a lease surrender at Priory House in Birmingham (63,000 sq ft), and will be receiving £2.85m in cash at the end of this month, officially ending the sublease (which was due to run to December 2027 at a rent of £322,000 p.a). We update our earnings forecasts (further detail later in this note) and highlight the dividend cover significantly improving to 1.08x in FY20E and 100bps reduction in our LTV in FY21E. Given the property has been uno