Posted on 29 Feb 2016

Palace buys Milton Keynes office building


Palace Capital has bought an office building in Milton Keynes for £7.2m, reflecting a net initial yield of 7.2%. 

The investor, which focuses on commercial property outside London, acquired the 49,000 sq ft using cash resources.

249 Midsummer Boulevard was built in 1990 and is let to tenants including DHL and Crawford & Co Adjusters, producing a net income of £550,000 a year.

The building has a weighted average unexpired lease term of 2.45 years to break or expiry. 

Neil Sinclair, chief executive of Palace Capital, said: “Milton Keynes is one of our favoured locations and we have other interests there. The net income will add directly to our net profit, which will increase our earnings per share, and we think there is excellent potential for rental growth in the short term. 

“We continue to investigate further suitable acquisitions which fit our criteria and where we can use our cash resources to increase our profitability.”

Savills advised the vendors. Avison Young represented Palace Capital.