Palace Capital, the property investment company that focuses on commercial property outside London, has completed the surrender of a lease held by Gala Casinos at Sol Central, Northampton, which the company acquired in June for £20.7m.
Gala (part of the Gala Coral Group) held a lease until March 2028 on 28,000 sq ft at Sol Central at a rental payable of £312,852 per annum, with provision for rent review in March 2018 and 2023. They vacated the premises in September 2011 but continued to pay rent and outgoings as they sought to dispose of their lease.
Gala paid a cash sum of £3 million to Palace Capital to be relieved of any further liability for rent, service charge and rates. They have also paid the sum of £805,000, including legal fees, in settlement of any further liability for dilapidations.
Palace Capital will, in the short term, be liable for the empty rates and service charge on the unit, which are expected to total approximately £270,000 per annum. Neil Sinclair, chief executive of Palace Capital, commented: "We have instructed a professional team to reconfigure and revitalise Sol Central and securing possession of the Gala premises is a crucial element of the company's plans. Preliminary plans have already been received, which we are evaluating, but the first impressions are exciting."