RNS announcement

Palace Capital plc

Major Planning Application in York

Palace Capital, the property investment company that focuses on commercial property outside London, has submitted a planning application to the City of York Council in respect of its significant asset at Hudson House, which is only one minute away from York Railway Station.

Hudson House formed part of the Sequel Portfolio acquired from Quintain Estates & Development plc in October 2013. The property was built in 1965 and comprises approximately 103,000 sq ft of office space, of which about 55,000 sq ft is let on short term tenancies, and the remainder has been empty for some time.

Palace Capital has made a planning application for a change of use to convert the majority of the building to residential accommodation providing 82 studio, one and two bedroom apartments. The remaining 37,000 sq ft will continue as office use but will be refurbished to the highest standard to satisfy York's shortage of Grade A office space.

Discussions with the City of York Council have been ongoing for some time and Palace Capital is hoping to receive approval of the planning application in the Autumn of this year.

Neil Sinclair, Chief Executive of Palace Capital, said:

"This is an exciting opportunity both for the City of York and Palace Capital. It demonstrates the active management that is ongoing right across the Company's portfolio.

"York is a fast growing city with a strong residential market and is increasingly attractive to major office occupiers. For example, Hiscox, the large insurance company, is due to complete its new 50,000 sq ft office building shortly."

Date: 8^th June 2015

For further information contact:

Palace Capital plc

Neil Sinclair, Chief Executive

Tel. 44 (0)20 3301 8331

Broker Profile (Financial PR)

Simon Courtenay / Harry Rippon

Tel. 44 (0)20 7448 3244