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RNS Number : 1153W Palace Capital PLC 20 December 2021
20 December 2021
Palace Capital PLC
("Palace Capital" or the "Company")
Palace Capital nears completion of disposal strategy with two further sales
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 and industrial sectors,
announces that it has completed the sale of Russell House, Walton on-Thames,
Surrey for £2.625 million and exchanged contracts to sell Westminster House,
Gerrards Cross, Buckinghamshire for £1.9 million. Both are being sold at a
significant premium to book value and the latest transactions bring to £28.2
million the value of properties sold under the Company's £30 million disposal
strategy.
Russell House, which was acquired by the Company in 2014, is a multi-let
office and industrial building with a floor area of 23,000 sq ft that is being
acquired by a subsidiary of Travis Perkins plc, the FTSE 250 builders'
merchant and home improvement retailer. Since acquisition, Palace Capital has
applied its active asset management skillset to the property, bringing it to
full occupancy, increasing annual rental income by 30% and, through the sale,
crystallising a significant uplift on the original purchase price.
Westminster House, which is being acquired by a private investment company, is
a multi-let office & residential building, with a floor area of 3,710 sq
ft, and the price also reflects a significant uplift on the original purchase
price.
Neil Sinclair, Chief Executive commented:
"12 of the 15 mature assets we identified last summer under our strategic
disposal plan have now been sold for £28.2 million of the £30 million
target. We are very pleased with the momentum we have been able to achieve
with the implementation of the strategy and it puts us in a good position as
we move into the new calendar year to take advantage of opportunities to
redeploy the proceeds into properties with stronger growth potential, in line
with our total return strategy."
Allsop acted for Palace Capital on Westminster House.
ENDS
For further information please contact:
PALACE CAPITAL PLC
Neil Sinclair, Chief Executive
Tel. +44 (0)20 3301 8331
Matthew Simpson, Chief Financial Officer
Tel. +44 (0)20 3931 9175
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)20 7614 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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