REG - Palace Capital PLC - DISPOSALS, DEBT AND CASH UPDATE

Palace CapitalAnnouncement

11/04/2025 13:30

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RNS Number : 7059E  Palace Capital PLC  11 April 2025

11 April 2025

Palace Capital plc

("Palace Capital" or the "Company")

DISPOSALS, DEBT AND CASH UPDATE

Palace Capital (LSE: PCA) announces an update on disposals, debt and cash
covering the period since it announced its Interim Results on 14 November
2024. A more in-depth trading update will be provided to the market later in
the month.

 

Disposals

·      The Company has completed on the sale of two investment
properties for £14.8 million which, after adjusting for rent top ups, is 9.6%
above the March 2024 valuation. The sales comprise:

o  HQ Office, York, a freehold, multi-let building for a gross price of
£10.0 million to a retained client of STR Capital Partners, at a 9.0% NIY.
The net sales price is in line with the March 2024 valuation.

o  Units 5&6b, Broad Street Plaza, Halifax, on a long leasehold interest
for £4.8 million to Calderdale and Huddersfield NHS Foundation Trust, at a
7.5% NIY and 38% ahead of the March 2024 valuation. Additionally, the sale
includes the removal of a seven year annual uncapped service charge shortfall
landlord liability, the value of which is estimated at £0.4 million.

 

·      The Company has now also completed on the sale of Nicholson Gate,
Fareham, for a net price of £3.1 million, as previously announced.

 

·      Sales activity at Hudson Quarter, York, has been muted since
November 2024 due to wider economic uncertainty but the final three bedroom
penthouse apartment has now been sold for the asking price of £0.8 million,
2.2% ahead of the March 2024 valuation. Ten units remain for sale and we
anticipate further sales in the coming months.

 

 

Debt and Cash Position

·      In line with the terms of the loan agreement with Scottish
Widows, the Company repaid the outstanding £8.0 million loan (£7.9 million
net of the loan break gain) in March 2025, in advance of the completion of the
sale of the NHS units at Halifax. The Company is now debt free and the
portfolio is entirely unencumbered.

 

·      The Company has been in a net cash position since April 2024 and
currently has cash of £32.1 million, including £1.1 million relating to the
quarterly dividend to be paid on 22 April 2025, as previously announced.

 

 

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

"Since the announcement of our interim results in November 2024, we have
continued to progress our disposal strategy and are now in a stronger cash
position having repaid the remaining loan, resulting in the portfolio being
entirely unencumbered.

"At an operational level, Palace Capital continues to make good progress with
its asset management activities and the management of its cost base. The
Company will provide additional detail on these and the strategy for its
remaining properties in a trading update expected to be announced later this
month. Following discussions with shareholders, we expect to announce details
of a further significant return of capital, likely through another tender
offer, in due course."

 

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)

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of the Market Abuse Regulation (EU) No. 596/2014 as it forms
part of UK law by virtue of the European Union (Withdrawal) Act 2018, as
amended.

 

 

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