British property investment company Palace Capital, through its subsidiary Palace Capital (Developments), has selected Caddick Construction to undertake the construction of its Hudson Quarter development in York.
The contract secured by Caddick Construction, part of the Yorkshire-based Caddick Group, is worth £35m.
Palace Capital consists of a diversified portfolio of UK regional commercial real estate in locations outside of London.
On 7 February 2019, Palace Capital announced that it has arranged a £26.5m debt facility with Barclays Bank, through its Leeds office, to part finance the scheme and the remainder will be funded from the company’s existing cash resources.
Palace Capital CEO Neil Sinclair 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.”
Demolition has already been completed at the site. Construction is expected to commence in February 2019 with completion scheduled for 2021.
The development scheme will consist of 127 apartments, 34,500ft² of offices, 5,000ft² of commercial space, as well as car parking.
Caddick Construction managing director Andrew Murray 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 has a £300m diversified portfolio of UK regional commercial property and the company’s investment strategy focuses on towns and cities outside of London that are characterised by thriving local economies and strengthening fundamentals.
Within those locations, the property investment company selects assets that have the potential to drive capital value and long-term rental income through tailored asset management programmes, delivering attractive shareholder returns.