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."
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
Heraclis Economides / Oliver Hardy
Tel: 44 (0)20 7260 1000
Arden Partners plc
Corporate Finance: Paul Shackleton / Elliot Mustoe / George Morgan
Corporate Broking: James Reed-Daunter
Tel: 44 (0)207 614 5900
Claire Turvey / Katie Hughes
Tel: 44 (0)20 3727 1000
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.