REG - Palace Capital PLC - Disposals and Debt Position Update

Palace CapitalAnnouncement

22/12/2022 07:00

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RNS Number : 5332K  Palace Capital PLC  22 December 2022

22 December 2022

Palace Capital plc

("Palace Capital" or the "Company")

Disposals and Debt Position Update

Palace Capital today provides an update on its property disposals and debt
position since its half year report ended 30 September 2022 announced on 24
November 2022.

Disposals

·     Since 30 September 2022, the Company has completed on  investment
property disposals totalling £7.6m, at an aggregate 3% premium to the 31
March 2022 book valuation. These include:

o  127 Above Bar Street, a leisure asset in Southampton, for £3.75m,
reflecting a 21% premium to 31 March 2022 book valuation.

o  Staple House, an office building in Winchester, for £3.55m, 10% below the
31 March 2022 book value.

o  A residential unit in Banbury for £0.3m, in line with the 31 March 2022
book value.

·     Apartment sales at Hudson Quarter, York have continued to progress
well, providing additional unencumbered cash for the Company. A further eight
apartments have completed in the period since 30 September, for a total of
£3.4m, with one unit exchanged to the value £0.7m, resulting in aggregate
proceeds of the 98 units completed or exchanged totalling £35.5m. A further
seven units are under offer to the value of £2.8m, leaving 22 units
remaining.

Debt position

·     As at 21 December 2022, gross debt has reduced by 10.6% from 30
September to £79.3m (30 September 2022: £88.7m) and cash reserves totalled
£12.9m, resulting in net debt of £66.4m (30 September 2022: £75.8m).
 Proforma loan to value ratio has reduced from 32.2% at 30 September 2022 to
29.6% as at today's date.

Commenting on today's update, Steven Owen, Interim Executive Chairman said:

"The Company continues to make steady progress with smaller asset disposals
being achieved in a difficult environment.

"The Board is mindful of the potential for further instability, including
interest rate rises, and therefore continues to monitor the timing of
significant property disposals for the time being. In the meantime, the focus
on disposal of smaller assets, active asset management and debt repayment
continues."

Enquiries

Palace Capital plc

Steven Owen, Interim Executive Chairman / Matthew Simpson, Chief Financial
Officer info@palacecapitalplc.com (mailto:info@palacecapitalplc.com)

or via FTI Consulting

Financial PR
FTI Consulting

Dido Laurimore / Giles Barrie

Tel: +44 (0)20 3727 1000

palacecapital@fticonsulting.com

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