Disposal of Tolworth property

RNS Number : 3693U

Palace Capital PLC

02 December 2013

 



PALACE CAPITAL PLC

DISPOSAL OF TOLWORTH PROPERTY

Palace Capital PLC ("Palace Capital" or the "Company"), the property company focussed on investing in the UK's secondary property market outside London, announces that it has disposed of one of its properties in Tolworth, Surrey.

As part of the Company's plan to manage its portfolio actively, the Board is pleased to confirm that it has sold a  long leasehold interest in Argent Court, Tolworth in Surrey, a 12,300 sq. ft. office building.  The property, which has been vacant for some time, has been sold for a cash consideration of £800,000 to a South London based firm of insurance brokers.

The Directors of Palace Capital believe this disposal has a number of positive benefits for the Company:

·     net debt is reduced by £775,000 from £20m to £19.225m, reducing the Company's interest liability by £33,000 per annum;

·     the irrecoverable expenditure mainly comprised of  'empty rates'  of £110,000 per annum is no longer payable by the Company;

·     three other units on the estate are already let and are producing a rental income of £95,900 per annum, replacing the annual net deficit of £14,100 per annum inherited on acquisition; and

·     the net asset value attributable to the property was £490,000 giving rise to a profit on sale of £285,000 after costs.

Commenting on the disposal Neil Sinclair, Managing Director said;

"The disposal of the Tolworth property will allow us to reduce both net debt and irrecoverable expenditure which, when taken with the new lettings announced earlier today, is further evidence of our desire to enhance the value of the Sequel portfolio through active portfolio management."

-ends-

Date: 2 December 2013

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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