RNS announcement

3 March 2022

Palace Capital plc

("Palace Capital" or the "Company")

Palace Capital exceeds disposal strategy targets with sale of Pelham House, Brighton

Palace Capital (LSE: PCA) the Main Market property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office & industrial sectors, announces that it has completed the sale of Pelham House, Pelham Square, Brighton for £1.6 million.

In April 2021, the Company announced a strategic disposal programme which identified 15 non-core properties for sale, with an aggregate value of at least £30 million. Pelham House is the fourteenth of the 15 properties to be sold and brings the total gross proceeds from the disposal programme to £31.5 million, which is 20% above the aggregate book value of the 14 properties and 12% ahead of the original purchase prices paid plus any capital expenditure.

Of the proceeds secured to date, £15.7 million has been allocated towards debt reduction, leaving £15.8 million for redeployment into properties that satisfy the Company's acquisition criteria.

Neil Sinclair, Chief Executive of Palace Capital commented, "These sales at 20% above book value have generated an ungeared 11% aggregated IRR for shareholders which with our continuing Hudson Quarter apartment sales, have further strengthened our balance sheet. Following the recent acquisition and letting activity, new income exceeds the rent lost through disposals, resulting in fewer but better quality properties. With a pipeline of potential opportunities, we look forward to updating the market on further acquisitions in due course as we continue to recycle capital."

ENDS

For further information please contact:

PALACE CAPITAL PLC

Neil Sinclair, Chief Executive

Tel. 44 (0)20 3301 8331

Matthew Simpson, Chief Financial Officer

Tel. 44 (0)20 3931 9175

Broker

Numis Securities

Heraclis Economides / Oliver Hardy

Tel: 44 (0)20 7260 1000

Broker

Arden Partners plc

Corporate Finance: Paul Shackleton / Elliot Mustoe / George Morgan

Corporate Broking: James Reed-Daunter

Tel: 44 (0)207 614 5900

Financial PR

FTI Consulting

Claire Turvey / Katie Hughes

Tel: 44 (0)20 3727 1000

palacecapital@fticonsulting.com

About Palace Capital plc (www.palacecapitalplc.com)

Palace Capital plc (LSE: PCA) is a UK Premium Listed REIT that has a 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 select assets that provide opportunities to drive both capital value and long-term rental income through tailored active asset management programmes ultimately delivering attractive shareholder returns.

www.palacecapitalplc.com