Chairman Stanley Davis said: “It is clear that Palace Capital has now reached a certain scale where the benefits of converting to a REIT are tangible and we are convinced that this is the best course to support our total return strategy as the company continues to grow.”
Furthermore, Palace Capital announced that 23,500 sq ft of vacant space at its Sol Northampton leisure scheme has been let to Gravity Fitness on a 15-year lease.
Gravity Fitness, based in Castleford, Yorkshire, is an expanding leisure operator that provides indoor family activities such as trampolining, bowling, indoor golf and wall climbing. The Sol branch will be its tenth operation.
The lease agreed with Gravity Fitness is at an initial rent of £141,000 per annum, with a minimum increase every five years based on the changes to RPI plus a percentage of turnover, once it reaches £1.0 million p.a. The deal includes a six month rent free period and a contribution to fit-out costs.
This letting represents 53% of the total vacant space.