Palace Capital, the Main Market REIT that has a UK regional commercial real estate portfolio focused on the office and industrial sectors in carefully selected locations outside London, announces that it has let a 14,600 sq ft light industrial unit in Kettering, Northamptonshire to ecommerce business Prodbuy Ltd. A lease regear with SIG Trading Limited, for 10 years with upwards only rent reviews, has also been completed at a 9.5% premium to ERV at its 34,780 sq ft unit in Plymouth.  These two lettings deliver a total of £280,000 of annual income, reflecting a 15% increase on the previous passing rent, before any minimum uplifts.

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Prodbuy has taken Unit A at Saxon House on a 10 year lease with RPI linked uplifts and at a premium to ERV as at 31 March 2021. The new letting further improves the rental tone for the adjacent unit, which is also owned by Palace, and means the Company’s industrial portfolio reverts to full occupancy. These properties are well located within the Midlands’ ‘golden triangle’ for logistics, just off the M1 / M6 interchange.

Richard Starr, Executive Property Director at Palace Capital commented, “Despite the government restrictions last year, we completed 31 leases at an average 14% premium to ERV which is a strong reflection of our asset management capabilities. As things are now opening up, leasing momentum is accelerating and in recent weeks we have witnessed a considerable increase in inspections of our vacant accommodation around the country. As the economy recovers, we are hopeful of announcing additional lettings in the coming months.”

Budworth Hardcastle acted for Palace Capital on the letting at Kettering.

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