Posted on 01 Dec 2015

Palace Capital posts solid NAV growth


Palace Capital has reported a steady increase in NAV as the value of its portfolio increases sharply to £140.4m.

In interim results for the six months to 30 September, the investor in regional commercial property said EPRA NAV per share had risen 9% since the same point last year to 404p. This was affected by a £20m equity raise in May that had a dilutive effect equivalent to 10p a share.

During the six months, the size of the portfolio increased significantly from £103m in March to £140.4m as the company deployed the proceeds of the equity raise.

It completed three acquisitions including the purchase of Sol Central, a large mixed use leisure scheme in Northampton for £20.7m.

The growth in the portfolio size helped Palace deliver EPRA earnings of £5.1m, compared with £1.8m last year.

Palace's chairman Stanley Davis said the company had made a number of "excellently timed" acquisitions in the past three year and was working hard to enhance value through asset management. He added that the company's priority was to grow assets under management.

"Our ambition in the near term is to build critical mass and continue to grow our portfolio of commercial properties located outside London," he said.