20 December 2021
Palace Capital PLC
(“Palace Capital” or the “Company”)
Palace Capital nears completion of disposal strategy with two further sales
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 and industrial sectors, announces that it has completed the sale of Russell House, Walton on-Thames, Surrey for £2.625 million and exchanged contracts to sell Westminster House, Gerrards Cross, Buckinghamshire for £1.9 million. Both are being sold at a significant premium to book value and the latest transactions bring to £28.2 million the value of properties sold under the Company's £30 million disposal strategy.
Russell House, which was acquired by the Company in 2014, is a multi-let office and industrial building with a floor area of 23,000 sq ft that is being acquired by a subsidiary of Travis Perkins plc, the FTSE 250 builders' merchant and home improvement retailer. Since acquisition, Palace Capital has applied its active asset management skillset to the property, bringing it to full occupancy, increasing annual rental income by 30% and, through the sale, crystallising a significant uplift on the original purchase price.
Westminster House, which is being acquired by a private investment company, is a multi-let office & residential building, with a floor area of 3,710 sq ft, and the price also reflects a significant uplift on the original purchase price.
Neil Sinclair, Chief Executive commented:
“12 of the 15 mature assets we identified last summer under our strategic disposal plan have now been sold for £28.2 million of the £30 million target. We are very pleased with the momentum we have been able to achieve with the implementation of the strategy and it puts us in a good position as we move into the new calendar year to take advantage of opportunities to redeploy the proceeds into properties with stronger growth potential, in line with our total return strategy.”
Allsop acted for Palace Capital on Westminster House.
ENDS