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.”