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RNS Number : 8015T Palace Capital PLC 29 November 2021
29 November 2021
Palace Capital PLC
("Palace Capital" or the "Company")
Palace Capital disposal strategy continues with Aldershot sale
Palace Capital (LSE: PCA) the Main Market property investment company that has
a diversified portfolio of UK commercial real estate in carefully selected
locations outside of London with a focus on the office & industrial
sectors, announces that it has sold 24 Blackwater Way, Aldershot to a private
property company for £2.44 million.
This reflects a 14% premium to book value and a more than 200% premium to the
original investment at acquisition, equating to a 514% total return.
Palace Capital acquired part of the property from Quintain in 2013 and
subsequently purchased the adjoining long leasehold, applying its active asset
management skills which resulted in a 20% increase in the annual rental income
with an extended lease term.
The property is an industrial building with a floor area of 28,000 sq ft and
is let to BHW Automotive on a 10-year lease from September 2019 at £228,000
per annum. The freehold is held by Rushmoor Borough Council and let on a
125-year term from 2003, with provision for ground rent reviews every ten
years. The next review is due in 2023 & the current ground rent payable is
£47,000 per annum so the current net income is £181,000 per annum.
Neil Sinclair, Chief Executive commented: "This is one of the 15 mature
buildings we earmarked for sale last summer under our strategic disposal plan,
which aims to raise £30 million for redeployment into properties with
stronger growth potential.
"The transaction takes the total sales so far under the plan to £21.3
million, with additional properties under offer, as we seek to reposition our
portfolio and to recycle the capital into regional office and industrial
properties that meet our criteria."
Parkdales acted for Palace Capital.
ENDS
For further information please contact:
PALACE CAPITAL PLC
Neil Sinclair, Chief Executive
Tel. +44 (0)20 3301 8331
Broker
Numis Securities
Heraclis Economides / George Fry
Tel: +44 (0)20 7260 1000
Broker
Arden Partners plc
Corporate Finance: Paul Shackleton / Elliot Mustoe
Corporate Broking: James Reed-Daunter
Tel: +44 (0)207 614 5900
Financial PR
FTI Consulting
Claire Turvey / Katie Hughes
Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com
About Palace Capital plc (www.palacecapitalplc.com)
Palace Capital plc (LSE: PCA) is a UK REIT that has a £262 million
diversified portfolio of UK regional commercial property. The Company
maintains a disciplined investment strategy focused on towns and cities
outside of London that are characterised by thriving local economies and
strengthening fundamentals. Within those locations the highly experienced
management team select assets that provide opportunities to drive both capital
value and long-term rental income through tailored active asset management
programmes ultimately delivering attractive shareholder returns.
www.palacecapitalplc.com
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