Palace Capital awards £35m York flats construction contract

Palace Capital on Monday awarded the contract for the construction of its Hudson Quarter development in York, in a contract worth £35m.

The AIM traded company said demolition works had already been completed and construction by Caddick Construction, part of Yorkshire-based Caddick Group, is expected to commence this month with completion scheduled for early 2021, by which time the finished scheme will comprise of 127 apartments, 34,500 sq ft of offices, 5,000 sq ft of commercial space plus car parking.

Neil Sinclair, chief executive of Palace Capital, said: "We are delighted that we will be working with Caddick Construction over the next two years to construct this exciting development situated only one minute's walk away from York Railway Station and within the historic walls of York City."

Palace Capital has arranged a £26.5m debt facility with Barclays Bank, through its Leeds office, to part finance the scheme with the remainder funded from the company's existing cash resources.

Andrew Murray, managing director of Caddick Construction, said: "This is a prestigious development in the heart of York city centre so we feel very privileged to be part of this development. The Caddick team is looking forward to the next two years where we will see new life being breathed into Hudson Quarter."

Palace Capital's shares were up 1.96% at 306.00p at 0843 GMT.