Palace Capital PLC Sale of three residential properties (5559D)
February 01 2018 - 1:00AM
UK Regulatory
TIDMPCA
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 GBP53.5 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 GBP1.23 million, which is 14% above book value.
The properties currently produce a gross income of GBP40,800 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 GBP20
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. +44 (0)20 3301 8331
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Nick Naylor / James Reeve / Asha Chotai
Tel. +44 (0)20 3328 5656
Arden Partners plc (Joint Broker)
Chris Hardie / Ciaran Walsh
Tel. +44 (0)207 614 5917
Capital Access Group (Financial PR)
Scott Fulton
Tel. +44 (0)20 3763 3400
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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