Palace Capital plc
(“Palace Capital” or the “Company”)
Palace Capital exceeds disposal strategy targets with sale of Pelham House, Brighton
Palace Capital (LSE: PCA) the Main Market property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office & industrial sectors, announces that it has completed the sale of Pelham House, Pelham Square, Brighton for £1.6 million.
In April 2021, the Company announced a strategic disposal programme which identified 15 non-core properties for sale, with an aggregate value of at least £30 million. Pelham House is the fourteenth of the 15 properties to be sold and brings the total gross proceeds from the disposal programme to £31.5 million, which is 20% above the aggregate book value of the 14 properties and 12% ahead of the original purchase prices paid plus any capital expenditure.
Of the proceeds secured to date, £15.7 million has been allocated towards debt reduction, leaving £15.8 million for redeployment into properties that satisfy the Company's acquisition criteria.
Neil Sinclair, Chief Executive of Palace Capital commented, “These sales at 20% above book value have generated an ungeared 11% aggregated IRR for shareholders which with our continuing Hudson Quarter apartment sales, have further strengthened our balance sheet. Following the recent acquisition and letting activity, new income exceeds the rent lost through disposals, resulting in fewer but better quality properties. With a pipeline of potential opportunities, we look forward to updating the market on further acquisitions in due course as we continue to recycle capital.”