UK property investment company Palace Capital plans to divest 50 residential units to the London Borough of Barnet, an administrative authority, for a total consideration of 18.2 million pounds ($23.3 million), emulating 97 percent of their book value.
The units are part of the 65 residential units purchased as part of the RT Warren (Investments) Ltd portfolio in October 2017. The 50 residential units currently produce a gross income of $795,213 per annum.
The funds from the sales will be added to Palace Capital’s cash reserves to be ultimately deployed towards new acquisitions that meet the company’s selective acquisition criteria.
Completion for each respective unit disposed will take place when they become vacant with all the properties expected to be sold on or before 31 March 2019.