RNS announcement

12 July 2019

Palace Capital plc

("Palace Capital" or the "Company")

AGM Statement

Ahead of its AGM later today, Palace Capital, the Main Market listed property investment company that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, provides the following short update on its Hudson Quarter development in York:

As indicated in the Company's Full Year Results announcement, the Hudson Quarter scheme was formally launched on 20 June 2019, with an initial 20 apartments offered for sale. Interest has been stronger than expected, reflecting the quality of the product and the buoyancy of the York market. 22 apartments, with an aggregate purchase price of £5.8 million, have now been reserved with deposits paid. The launch of the second phase is under consideration and Palace Capital looks forward to updating shareholders in due course.

Construction is currently on time and on budget, with completion expected in early 2021.

For further information, contact:

FTI Consulting (Financial PR)

Claire Turvey / Methuselah Tanyanyiwa

palacecapital@fticonsulting.com

Tel. 44 (0)20 3727 1000

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

Palace Capital plc (LSE: PCA) is a Main Market listed property investment company that has a c. £280 million diversified portfolio of UK regional commercial property. The Company maintains a disciplined investment strategy focused on towns and cities outside of London that are characterised by thriving local economies and strengthening fundamentals. Within those locations, the highly experienced management team selects assets that provide opportunity to drive both capital value and long-term rental income through tailored active asset management programmes, ultimately delivering attractive shareholder returns.