REG - Palace Capital PLC - Palace Capital exceeds disposal strategy targets

Palace CapitalAnnouncement

03/03/2022 07:00

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RNS Number : 4551D  Palace Capital PLC  03 March 2022

3 March 2022

Palace Capital plc

("Palace Capital" or the "Company")

Palace Capital exceeds disposal strategy targets with sale of Pelham House,
Brighton

 

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 & industrial
sectors, announces that it has completed the sale of Pelham House, Pelham
Square, Brighton for £1.6 million.

In April 2021, the Company announced a strategic disposal programme which
identified 15 non-core properties for sale, with an aggregate value of at
least £30 million. Pelham House is the fourteenth of the 15 properties to be
sold and brings the total gross proceeds from the disposal programme to £31.5
million, which is 20% above the aggregate book value of the 14 properties and
12% ahead of the original purchase prices paid plus any capital expenditure.

Of the proceeds secured to date, £15.7 million has been allocated towards
debt reduction, leaving £15.8 million for redeployment into properties that
satisfy the Company's acquisition criteria.

Neil Sinclair, Chief Executive of Palace Capital commented, "These sales at
20% above book value have generated an ungeared 11% aggregated IRR for
shareholders which with our continuing Hudson Quarter apartment sales, have
further strengthened our balance sheet. Following the recent acquisition and
letting activity, new income exceeds the rent lost through disposals,
resulting in fewer but better quality properties. With a pipeline of potential
opportunities, we look forward to updating the market on further acquisitions
in due course as we continue to recycle capital."

 

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 / Oliver Hardy

Tel: +44 (0)20 7260 1000

Broker

Arden Partners plc

Corporate Finance: Paul Shackleton / Elliot Mustoe / George Morgan

Corporate Broking: James Reed-Daunter

Tel: +44 (0)207 614 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 Premium Listed REIT that has a
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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