AGM Statement

RNS Number : 4460S

Palace Capital PLC

08 July 2015

 

Palace Capital plc

("Palace Capital" or the "Company")

AGM Statement

Ahead of the Company's Annual General Meeting, to be held today, Palace Capital is providing a trading update covering the period from 1 April 2015 to date.

Transactions

·      Completed purchase of Bank House in Leeds for £10.0 million in April 2015

-      88,000 sq ft, 90% occupancy, net rent of £860,000 per annum, two minutes from Leeds Railway Station

·      Acquisition of Sol Central in Northampton for £20.7 million in May 2015

-      190,000 sq ft mixed use leisure scheme near Northampton Railway Station, net rental income of £1.89 million per annum

-      Supported by a £20.0 million equity fundraising at £3.60 per share

·      Completed sale of Unit 1 at Burgess Hill for £1.25 million in June 2015, acquired for £690,000 in August 2014

Asset management

·      Planning application submitted in June 2015 for a change of use to convert the majority of Hudson House, York, into 82 apartments

·      Planning approval received for 13 residential units at Dartford

·      Appointment of professional team at Southampton with a view to making an early planning application for restaurant/retail and residential schemes

·      Vacant hi-tech unit of 15,600 sq ft at Burgess Hill currently under offer

Financing

·      Four year loan facility of £4.5 million with Lloyds Bank plc in May 2015 secured against Bank House, Leeds, at a rate of 2.1% per annum over Libor

·      Five year loan of £11.385 million from Santander UK at 2.25% per annum over Libor to fund the purchase of Sol Central, Northampton, in May 2015

Appointment of Finance Director

·      Stephen Silvester was appointed in May 2015, and joined the Company on 1 July 2015 from NewRiver Retail Ltd.

Neil Sinclair, Chief Executive of Palace Capital, said:

"It has been a busy start to the year as we continue our rapid growth. The team continues to actively manage the existing portfolio by letting, refurbishing and reconfiguring space to add significant value.

"We are constantly on the lookout for additional acquisitions of either companies or single assets that offer the potential to create value where there has been a lack of asset management in the past. We are currently looking at a number of potential opportunities and property management initiatives, and will update shareholders on any progress in due course."

Date: 8 July 2015

For further information contact:

Palace Capital plc

Stanley Davis, Non-executive Chairman

Neil Sinclair, Chief Executive

Tel. [phone]

Allenby Capital Limited (Nominated Adviser and Joint Broker)

Nick Naylor / James Reeve

Tel. [phone]

Arden Partners plc (Joint Broker)

Chris Hardie / Ciaran Walsh

Tel. [phone]

Broker Profile (Financial PR)

Simon Courtenay / Harry Rippon Tel. [phone]

 

END

 

 

AGMUBRORVNABRUR