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Palace Capital puts an end to Polestar Building woes with new tenant

London-based property group Palace Capital has announced it has let the former Polestar Building to a new tenant, after the previous occupants called in the administrators.

The 113,000 sq ft industrial property on the Marsh Barton Trading Estate in Exeter had remained empty after Polestar UK Print, the building’s previous tenants, had gone into administration.

In June, Palace had tried to renegotiate a 12-month licence for the building with the company which had purchased the assets of Sheffield-headquartered Polestar, but this newly formed company itself went into administration.

However, following the firm’s travails at the building, Palace has finally secured fellow printing firm Wheaton’s Exeter Ltd, which is helmed by former members of Polestar’s senior management team, to a 10-year lease.

Terms of the deal, revealed by Palace, include an initial rental of £282,000 per annum for the first 18 months, rising to £452,000 per annum in February 2018 with another rent review scheduled for August 2021.

Neil Sinclair, Chief Executive of Palace Capital, commented: “This is an excellent deal for Palace Capital. With the administration of Polestar we were faced with not only a loss of income but the added burden of empty rates after 6 months and security, maintenance and insurance costs which could have affected our profitability. Through our active management style we have secured a new tenant on attractive terms.

“Our goal is always to sustain and ultimately increase our income so that our shareholders benefit from an attractive yield and capital growth.”

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