REG - Palace Capital PLC - Further Update on Strategy and Changes to Board

Palace CapitalAnnouncement

19/07/2022 07:00

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RNS Number : 8720S  Palace Capital PLC  19 July 2022

19 July 2022

Palace Capital plc

("Palace Capital" or the "Company")

Further Update on Strategy and Changes to the Board

Palace Capital (LSE:PCA), the Main Market property investment company that
owns a diversified portfolio of UK commercial real estate in carefully
selected locations outside of London, today provides an update on the
Company's strategy following the announcement on 4 July 2022.

In its strategy update of 4 July 2022, the Board undertook to reposition the
Company as an ESG driven regional office market specialist, reinvesting
proceeds from the sale of the industrial portfolio into improving the existing
regional office portfolio and also into new opportunities in the regional
office market. In light of shareholder feedback following that update, it has
been decided by the Board that such a strategy needs amending. The Board will
therefore now focus on maximising cash returns to shareholders, whilst
continuing to remain mindful of consolidation in the Real Estate sector as
part of its considerations.

The Board will continue to pursue a sale of the Company's industrial portfolio
of eight assets, which were independently valued as at 31 March 2022 at £46.5
million. Should a sale of the industrial portfolio be successful it is
intended that the net proceeds of the sale, after repayment of debt relating
to the industrial portfolio, will be distributed to shareholders by either a
special dividend or buyback via a tender offer.

The Board will also continue its strategy of disposing of other non-core
investments and seek to complete the remaining sales of the residential
apartments at York. Funds from these disposals will be aggregated with those
from the sale of the industrial portfolio and distributed to shareholders.

The share buyback programme to repurchase up to 2.3m ordinary shares,
representing approximately 5% of the Company's ordinary shares, announced on 4
July 2022 was completed on 11 July 2022 at an average price of 260 pence which
represents a 33% discount to the last reported EPRA NTA per share.

In light of the amended strategy, Mickola Wilson (Senior Independent
Director), Kim Taylor-Smith (Non-Executive Director), and Paula Dillon
(Non-Executive Director) consider that now is the right time to step down from
the Board with immediate effect, and therefore will not be offering themselves
for re-election at the Annual General Meeting on 29 July 2022. The Company
will look to appoint a new Non-Executive Director in due course.

Commenting on today's announcement, Steven Owen, Interim Executive Chairman
said: "I would like to thank Mickola, Kim and Paula for their dedication and
commitment to Palace Capital, and we wish them all the best for the future."

 

Palace Capital plc
Steven Owen, Interim Executive Chairman / Matthew Simpson, Chief Financial
Officer

Tel. +44 (0)20 3301 8330

Broker
Numis

Heraclis Economides / Oliver Hardy

Tel: +44 (0)20 7260 1000

Broker
Arden Partners plc

Corporate Finance: John Llewellyn-Lloyd / Elliot Mustoe

Corporate Broking: James Reed-Daunter

Tel: +44 (0)207 614 5900

Financial PR
FTI Consulting

Dido Laurimore / Giles Barrie

Tel: +44 (0)20 3727 1000

palacecapital@fticonsulting.com

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