Sale of three residential properties

RNS Number : 5559D

Palace Capital PLC

01 February 2018

 

Palace Capital PLC

("Palace Capital" or the "Company")

Sale of three residential properties

Palace Capital plc, the property investment company that focuses on commercial property predominantly outside London, announces that it has sold three terraced houses which formed part of the recently acquired RT Warren (Investments) Ltd ("RT Warren") portfolio.

The recent corporate acquisition of RT Warren, completed in early October 2017 for £53.5 million, comprised 21 commercial properties and 65 residential properties. In the Company's interim results statement issued on 4 December 2017, the Directors of the Company stated it was their intention to sell the residential properties as they are not core to Palace Capital's business.

An approach was received to buy three of the houses located at The Alders, Heston in the London Borough of Hounslow and the sale of the freeholds of these three houses has now been completed for an aggregate sum of £1.23 million, which is 14% above book value. The properties currently produce a gross income of £40,800 per annum.

The Directors have decided to retain two of the other residential properties in the RT Warren portfolio, located in Banbury, for strategic reasons. Leading agents have now been instructed to market the 60 remaining residential properties as a single portfolio and offers are being invited in excess of £20 million.

Neil Sinclair, Chief Executive of Palace Capital, commented: "This small sale is a continuation of our policy to recycle our capital and progress our decision to sell non-core assets. The Company has a strong track record in this approach and it is our intention to reinvest the funds raised in higher income producing properties."

Date: 1 February 2018

For further information, contact:

Palace Capital plc

Neil Sinclair, Chief Executive

Stephen Silvester, Finance Director

Tel. [phone]

Allenby Capital Limited (Nominated Adviser and Joint Broker)

Nick Naylor / James Reeve / Asha Chotai

Tel. [phone]

Arden Partners plc (Joint Broker)

Chris Hardie / Ciaran Walsh

Tel. [phone]

Capital Access Group (Financial PR)

Scott Fulton

Tel. [phone]

About Palace Capital plc (www.palacecapitalplc.com):

Palace Capital is a UK property investment company admitted to trading on the AIM Market of the London Stock Exchange (LSE: PCA). The Company is not sector specific and looks for opportunities where it can enhance the long-term income and capital value through asset management and strategic capital development in locations outside London. In its last reported financial year, Palace Capital produced a 20.0% increase in adjusted profit before tax, a 7.0% uplift in EPRA NAV per share and a 16.0% increase in dividends.

 

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