RNS Number : 1827D
Palace Capital PLC
26 March 2014

26 March 2014



("Palace Capital" or the "Company")




Palace Capital, the AIM quoted property investment company focussed on investing in the UK's secondary property market outside London, is pleased to announce a further asset disposal as a continuation of its active management of the Sequel Portfolio, acquired in October 2013.


The Bonded Warehouse, Atlantic Wharf, Cardiff, is an office building comprising 17,375 sq. ft. and which has not been substantially refurbished since 1987. Two floors comprising 8,325 sq. ft. are let to a firm of architects until March 2018 at a rental of £80,000 per annum but 9,050 sq. ft. is vacant and in need of refurbishment.

The property has been sold for a cash consideration of £1.1 million, which, after costs, represents a 20% premium to its book value. The majority of the net proceeds will be applied towards the reduction of debt. Following this debt reduction, the £20 million debt facility taken out with Nationwide at the time of acquisition of the Sequel portfolio, will be reduced to approximately £17 million.

Commenting on the disposal, Neil Sinclair, Managing Director, said


"I am pleased to report the disposal, at above book value, of The Bonded Warehouse, Cardiff. This represents a further example of active portfolio management and results in our debt on the Sequel Portfolio having fallen from £20 million to £17 million in a little over five months from its acquisition. We look forward to reporting our second interim results later this week."


For further information contact:


Palace Capital Plc

Tel. 44 (0)20 7722  7603

Stanley Davis, Non-executive Chairman


Neil Sinclair, Managing Director




Allenby Capital Limited

Tel. 44 (0) 20 3328 5656

Nick Naylor, Corporate Finance


Mark Connelly, Corporate Finance



Arden Partners plc

Tel: 44 (0) 20 7614 5917

Christopher Hardie, Corporate Finance




Broker Profile (Financial PR)

Tel. 44(0) 20 7448 3244

Simon Courtenay

Tamsin Shephard



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