Sale of property at Burgess Hill

RNS Number : 2367Q

Palace Capital PLC

16 June 2015

 



Palace Capital plc

("Palace Capital" or the "Company")

COMPLETION OF SALE OF HI-TECH BUILDING AT BURGESS HILL

Further to our annual results announcement dated 28 May 2015, Palace Capital, the property investment company that focuses on commercial property outside London, has completed the sale of Unit 1, Clayton Manor, Victoria Gardens, Burgess Hill for £1.25 million.  It has been sold to David Cover & Son Ltd for their own occupation.  Burgess Hill is located in West Sussex and is situated 9 miles north of Brighton and 14 miles south of Crawley.

The property, which is a modern hi-tech warehouse and office building comprising approximately 16,100 sq ft with 43 car parking spaces, has been vacant since June 2013.  It formed part of the portfolio owned by Property Investment Holdings Ltd, which was acquired for £32 million by Palace Capital in August 2014.  At that time the property was valued at £690,000, which was updated as at 31 March 2015 to £1.09 million.

Contracts for the sale were exchanged last February but it was conditional on the prospective purchaser securing planning permission to use the premises as a Builders Merchants.  This was obtained last month.

Neil Sinclair, Chief Executive of Palace Capital, said:

"I am delighted with this disposal at Burgess Hill, which represents a 15% premium to book value and an 81% premium to the purchase valuation in August 2014. We are recycling our capital and this sale has helped us to reduce debt and irrecoverable expenditure. This includes empty rates liabilities in excess of £100,000 per annum that will no longer be payable by the Company.

"This is further evidence of our busy active management strategy, which continues to enhance the value of our portfolio and increase cash flow.  I look forward to updating our shareholders on other initiatives in the future."

Flude Commmercial and Vail Williams acted on behalf of Palace Capital.

Date: 16^th June 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

 

 

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