Disposal of the Bonded Warehouse

RNS Number : 1827D

Palace Capital PLC

26 March 2014

 



26 March 2014

PALACE CAPITAL PLC

("Palace Capital" or the "Company")

DISPOSAL OF THE BONDED WAREHOUSE, ATLANTIC WHARF, CARDIFF

Palace Capital, the AIM quoted property investment company focussed on investing in the UK's secondary property market outside London, is pleased to announce a further asset disposal as a continuation of its active management of the Sequel Portfolio, acquired in October 2013.

The Bonded Warehouse, Atlantic Wharf, Cardiff, is an office building comprising 17,375 sq. ft. and which has not been substantially refurbished since 1987. Two floors comprising 8,325 sq. ft. are let to a firm of architects until March 2018 at a rental of £80,000 per annum but 9,050 sq. ft. is vacant and in need of refurbishment.

The property has been sold for a cash consideration of £1.1 million, which, after costs, represents a 20% premium to its book value. The majority of the net proceeds will be applied towards the reduction of debt. Following this debt reduction, the £20 million debt facility taken out with Nationwide at the time of acquisition of the Sequel portfolio, will be reduced to approximately £17 million.

Commenting on the disposal, Neil Sinclair, Managing Director, said

"I am pleased to report the disposal, at above book value, of The Bonded Warehouse, Cardiff. This represents a further example of active portfolio management and results in our debt on the Sequel Portfolio having fallen from £20 million to £17 million in a little over five months from its acquisition. We look forward to reporting our second interim results later this week."

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For further information contact:

Palace Capital Plc	Tel. [phone]
Stanley Davis, Non-executive Chairman
Neil Sinclair, Managing Director
Allenby Capital Limited	Tel. [phone]
Nick Naylor, Corporate Finance
Mark Connelly, Corporate Finance
Arden Partners plc	Tel: [phone]
Christopher Hardie, Corporate Finance
Broker Profile (Financial PR)	Tel. [phone]
Simon Courtenay Tamsin Shephard

 

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