RNS announcement

Palace Capital plc ("Palace Capital" or "the Company")

PROPERTY PORTFOLIO UPDATE

 Palace Capital plc, the property company focussed on investing in the UK's secondary property market outside London, has today agreed a new letting at one its property assets.

Palace Capital's Strategy

The Company's strategy is to focus on opportunities in the UK secondary property market to identify and acquire assets that offer significant potential to create value.  It has assembled an experienced team of property specialists, who have the ability to manage a larger portfolio of assets that offer good cash flows, yet may have been managed poorly in the past.  The team is confident that with its property management skills it can add significant value by letting vacant space, re-gearing leases and re-conforming space to make it more attractive to potential tenants.  The Board is confident that this approach will strengthen the Company's rental income and grow the investment value of the properties in the portfolio.

Managing Acquisitions

In October 2011, Palace Capital acquired a private business Hockenhull Estates Ltd that owned a number of properties in the Northwest.  It currently owns nine properties in Cheshire, of which five are located in Nantwich and four are located in Crewe.

One of the properties is at 7/7a Earle Street, in Crewe ("the Property").  It is an office property with retail use on the ground floor. The retail space was vacated by the previous tenant in March 2013.  Palace Capital has subsequently re-let the space.  It has agreed a ten year lease to Panbet Ltd, with a tenant option to break at the third and fifth year and with a rent review at the fifth year.  The rental agreed is on the basis that in the third year the rent will be higher than that paid by the previous tenant. The new lease is subject to the tenant securing an appropriate licence to operate as a bookmaker at the Property.

The Company is confident that the market in Cheshire remains resilient and the Board continues to manage the Hockenhull portfolio actively, which now has no vacancies. 

Neil Sinclair, Managing Director said:

"  I believe that we have the skills to identify and target secondary properties and manage them actively.  The team has the track record that shows how we can create value from our style of property management.  There is no wizardry to what we do, just experience and good old fashioned hard work. 

"  We believe that there is a huge market out there of secondary commercial property assets that could benefit from our approach.  We are tracking some interesting acquisition opportunities and we look forward to updating our shareholders on progress in the future."

-ends-

Date: 20^th June 2013

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