LONDON (Alliance News) - Commercial property investor Palace Capital PLC on Monday said it has acquired a Milton Keynes office block for GBP7.2 million in an off-market deal.
Palace paid cash for 249 Midsummer Boulevard, which is located close to Milton Keynes Central Station and offers 49,000 square feet of lettable space. It currently produces a net annual rental income of GBP550,000, reflecting a net initial yield of 7.2%.
The office block houses postal and logistics company DHL and claims manager Crawford & Co Adjusters (UK).
"This is our first acquisition since last August. Although our cash resources are earning a minimal return, we only buy where we find value. We are delighted with this purchase because Milton Keynes is one of our favoured locations and we have other interests there," said Neil Sinclair, Palace Capital's chief executive.
Palace shares were up 0.5% to 334.00 pence.