RNS announcement

Palace Capital plc

("Palace Capital" or the "Company")

PALACE CAPITAL SUBMIT MAJOR PLANNING APPLICATION IN YORK                

Palace Capital, the property investment company that focuses outside London, today announces that it has submitted a planning application to City of York Council for a major development on its 2 acre site at Hudson House, Toft Green, York.

Hudson House, which is within the City Walls and is only a minute walk from York Railway Station, is a 1960s office building comprising approximately 103,000 sq ft.

Two planning approvals for converting the existing building into residential and offices/residential had already been obtained by Palace Capital. However, following extensive consultations the Company has submitted a new planning application to demolish the existing property and erect four new buildings that will have a total net area of 139,000 sq ft. There will be a landscaped route through the site which will connect York Railway Station to Toft Green and Micklegate.

The submitted planning application incorporates 127 apartments (with a net sales area of 100,000 sq ft), 34,000 sq ft net of Grade A offices, 5,000  sq. ft net of commercial space and 97 car parking spaces.

Neil Sinclair, the Chief Executive of Palace Capital, commented:

"Hudson House was part of the Sequel Portfolio which we acquired from Quintain plc in October 2013. We have been very encouraged by the feedback received during the pre-planning application process and we are excited about the prospects for this property. Grade A office space is much needed in this fast-growing city which is less than two hours by train from London."

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Date: 22 March 2017

For further information, contact:

Palace Capital plc

Neil Sinclair, Chief Executive

Stephen Silvester, Finance Director

Tel. 44 (0)20 3301 8331

Allenby Capital Limited (Nominated Adviser and Joint Broker)

Nick Naylor / James Reeve

Tel. 44 (0)20 3328 5656

Arden Partners plc (Joint Broker)

Chris Hardie / Ciaran Walsh

Tel. 44 (0)207 614 5917

Capital Access Group (Financial PR)

Scott Fulton / Jessica Bradford

Tel. 44 (0)20 3763 3400