Palace Capital plc
("Palace Capital" or the "Company")
COMPLETION OF SALE OF HI-TECH BUILDING AT BURGESS HILL
Further to our annual results announcement dated 28 May 2015, Palace Capital, the property investment company that focuses on commercial property outside London, has completed the sale of Unit 1, Clayton Manor, Victoria Gardens, Burgess Hill for £1.25 million. It has been sold to David Cover & Son Ltd for their own occupation. Burgess Hill is located in West Sussex and is situated 9 miles north of Brighton and 14 miles south of Crawley.
The property, which is a modern hi-tech warehouse and office building comprising approximately 16,100 sq ft with 43 car parking spaces, has been vacant since June 2013. It formed part of the portfolio owned by Property Investment Holdings Ltd, which was acquired for £32 million by Palace Capital in August 2014. At that time the property was valued at £690,000, which was updated as at 31 March 2015 to £1.09 million.
Contracts for the sale were exchanged last February but it was conditional on the prospective purchaser securing planning permission to use the premises as a Builders Merchants. This was obtained last month.
Neil Sinclair, Chief Executive of Palace Capital, said:
"I am delighted with this disposal at Burgess Hill, which represents a 15% premium to book value and an 81% premium to the purchase valuation in August 2014. We are recycling our capital and this sale has helped us to reduce debt and irrecoverable expenditure. This includes empty rates liabilities in excess of £100,000 per annum that will no longer be payable by the Company.
"This is further evidence of our busy active management strategy, which continues to enhance the value of our portfolio and increase cash flow. I look forward to updating our shareholders on other initiatives in the future."
Flude Commmercial and Vail Williams acted on behalf of Palace Capital.
Date: 16th June 2015
For further information contact:
Palace Capital plc
Stanley Davis, Non-executive Chairman
Neil Sinclair, Chief Executive
Tel. +44 (0)20 3301 8331
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Nick Naylor / James Reeve
Tel. +44 (0)20 3328 5656
Arden Partners plc (Joint Broker)
Chris Hardie / Ciaran Walsh
Tel. +44 (0)20 7614 5917
Broker Profile (Financial PR)
Simon Courtenay / Harry Rippon
Tel. +44 (0)20 7448 3244