REG - Palace Capital PLC - DISPOSALS AND DEBT UPDATE

Palace CapitalAnnouncement

07/02/2024 07:00

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RNS Number : 2400C  Palace Capital PLC  07 February 2024

7 February 2024

Palace Capital plc

("Palace Capital" or the "Company")

DISPOSALS AND DEBT UPDATE

Palace Capital (LSE: PCA) announces an update on disposals and its debt
position since the Company last reported on 15 November 2023.

 

FY24 Disposals

·     The Company has unconditionally exchanged or completed on the sale
of three investment properties for £15.2 million which, after adjusting for
rent incentives, is 2.3% below the March 2023 valuation. The sales comprised:
Bridge Park, East Grinstead for £7.2 million; High Street, Sutton for £3.6
million; and Lendal & Museum Street, York for £4.4 million.

·     Several properties are currently under offer which, if they all
complete in the next few months, will provide the Company with various options
for returning capital to shareholders, including a tender offer.

·     Sales activity at Hudson Quarter continues with two apartments
totalling £1.4 million under offer, leaving 16 units remaining.

 

 

Balance Sheet and Debt

·    The Company utilised part of the sale proceeds to fully repay its
floating rate £5.6 million loan with Barclays, on which the most recent
interest rate was at 7.1%. Consequently, the Company only has the Scottish
Widows debt facility of £8.3 million outstanding, which is at a fixed
interest rate of 2.9% until July 2026.

·     Only one asset is secured against the Scottish Widows loan,
therefore every other investment property and all residential apartments are
unencumbered, thus enabling the Company to have complete control over the
timing of future disposals.

·      As at 6 February 2024, gross debt was £8.3 million and cash
reserves totalled £5.6 million, resulting in net debt of £2.7 million and a
proforma LTV of 2.5%.

 

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

"Against the backdrop of challenging property and financial markets, we have
continued to progress our disposal and debt reduction strategy with the result
that the Company is in a strong financial position with the entire portfolio
virtually unencumbered. It is expected that further progress regarding
disposals and options for returning capital to shareholders, including a
tender offer, will be announced in the coming months."

 

Palace Capital plc
Steven Owen, Executive Chairman
info@palacecapitalplc.com (mailto:info@palacecapitalplc.com)

Financial PR
FTI Consulting

Dido Laurimore / Giles Barrie

Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com (mailto:palacecapital@fticonsulting.com)

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