THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN, IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR NEW ZEALAND OR INTO ANY OTHER JURISDICTION WHERE TO DO SO WOULD BREACH ANY APPLICABLE LAW OR REGULATION.

THIS ANNOUNCEMENT, IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.  THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF PALACE CAPITAL PLC OR INTO ANY OTHER JURISDICTION WHERE TO DO SO WOULD BREACH ANY APPLICABLE LAW OR REGULATION.

Palace Capital plc

("Palace Capital" or the "Company") 

Further re. Placing and Open Offer to raise £70 million

Notice of General Meeting

Further to the announcement made earlier today, Palace Capital, the property investment company that focuses on commercial property outside London, is pleased to announce a conditional placing (the "Placing") of 20,588,236 new ordinary shares (the "Placing Shares") to raise a total of £70 million (before expenses). 1,257,534 of the Placing Shares have been subscribed for subject to clawback under an open offer to raise £4.3 million (the "Open Offer"). The Placing has been conducted at a price of 340 pence per Placing Share (the "Placing Price"). The Placing Price represents an approximate 12 per cent. discount to the closing middle market price of 385 pence per Existing Ordinary Share on 18 September 2017, the last business day before the announcement of the Placing and Open Offer.

Certain of the Directors of the Company have participated in the Placing, details of which are included in the table below.

In addition, the Company will today allocate the LTIP Shares for awards made under the LTIP in 2014, following the Sequel acquisition in 2013. Today's grants will total 66,352 Ordinary Shares. To make the allocations of the LTIP Shares, the Company will  transfer 100,000 Ordinary Shares out of treasury to The Palace Capital Employee Benefit Trust.

Changes to the interests of Directors and PDMRs in the share capital of the Company following the Placing and issue of the LTIP Shares will, on Admission, be as follows:

The Company will be allocating options to certain Directors pursuant to the Company's deferred bonus plan.  The value of options to be issued in lieu of bonus entitlements will total £127,895, representing 35% of the Directors' bonuses for the year ended 31 March 2017, as detailed in the Company's report and accounts for the year ended 31 March 2017. The number of options granted will be calculated based on the average closing mid-market price of an Ordinary Share on the five business days ending 25 September 2017. Further details of these option grants will be announced in due course.

Total voting rights

Following the transfer of the 100,000 Ordinary Shares out of treasury, Palace Capital will have (excluding the total of 549,587 ordinary shares that will be held in treasury) 25,250,692 ordinary shares in issue.

The above figure of 25,250,692 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Notice of General Meeting

The Placing and Acquisition are conditional on, inter alia, the passing of certain resolutions at the General Meeting, to be held at the offices of CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street, London EC4N 6AF at 10.00 a.m. on 6 October 2017 and notice of which is today being posted to Shareholders. The Resolutions to be proposed at the General Meeting, are, inter alia, to provide the Company with the authority to issue and allot the Placing Shares.

A copy of the Circular, which includes notice of the General Meeting, will be posted to shareholders shortly and will be available from the Company's website www.palacecapitalplc.com.

Capitalised terms used in this Announcement shall have the meanings given to such terms in the Company's announcement this morning.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this Announcement this inside information is now considered to be within the public domain.

Neil Sinclair, Chief Executive of Palace Capital, commented:

"We are delighted with the support that we have received for the fundraising and are very pleased to welcome a substantial number of new institutional shareholders to our register."

KEY STATISTICS

EXPECTED TIMETABLE OF PRINCIPAL EVENTS     

For further information please 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 / Asha Chotai

Tel. 44 (0)20 3328 5656

Arden Partners plc (Lead Bookrunner and Joint Broker)

Chris Hardie / Ciaran Walsh

Tel. 44 (0)207 614 5900

Capital Access Group (Financial PR)

Scott Fulton

Tel. 44 (0)20 3763 3400

About Palace Capital plc (www.palacecapitalplc.com):

Palace Capital is a UK property investment company admitted to trading on the AIM Market of the London Stock Exchange (LSE: PCA). The Company is not sector specific and looks for opportunities where it can enhance the long-term income and capital value through asset management and strategic capital development in locations outside London. In its last reported financial year, Palace Capital produced a 20.0% increase in adjusted profit before tax, a 7.0% uplift in EPRA NAV per share and a 16.0% increase in dividends.