Palace Capital PLC - Contracts exchanged on 50 residential properties
Palace Capital (LSE: PCA), the property investment company that focuses on commercial property outside London, is pleased to announce that it has exchanged contracts to sell 50 residential units for a total consideration of £18.2 million, reflecting 97% of their book value, to the London Borough of Barnet.
The units are part of the 65 residential units acquired as part of the RT Warren (Investments) Ltd portfolio in October 2017, of which three were sold in February 2018 for £1.25 million. The 50 residential units, which are all debt free and uncharged, currently produce a gross income of £0.62 million per annum.
Completion for each respective unit sold will take place when they become vacant with all the properties expected to be sold on or before 31 March 2019. The funds from the sales will be added to the Company's cash reserves to be ultimately deployed towards new acquisitions that meet the Company's selective acquisition criteria.
Neil Sinclair, Chief Executive of Palace Capital, commented: "We have found an excellent buyer and achieved a very satisfactory price within 3% of our book value. We intend to market the remaining 10 units separately in early 2019. The sale of these units has always been one of our key action points on the Warren Portfolio and we are pleased to have succeeded in this regard."
About Palace Capital plc (www.palacecapitalplc.com):
Palace Capital is a UK property investment company admitted to trading on the London Stock Exchange plc's main market (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 27% increase in adjusted profit before tax, a 7% uplift in EPRA NAV per share from a post fundraise proforma base and a 3% increase in dividends for the year ending 31 March 2018.