Palace Capital PLC
("Palace Capital" or the "Company")
Palace Capital's sales programme continues
Palace Capital, the property investment company that focuses on commercial property outside London, today announces that it has sold 138 Molesey Avenue, West Molesey, Surrey for £595,000 to a private investor.
This industrial building comprises 5,536 sq ft and was acquired by Palace Capital as part of the £32 million PIH Portfolio in August 2014. It is let until June 2021 at a rental of £40,000 per annum exclusive. The sale price was at a premium of 10% to book value as at 30 September 2017.
In addition, the Company has now completed the sale of the former Polestar building at Marsh Barton Exeter for £3.29m to Travis Perkins. This sale was announced in the Company's interim results on 4 December 2017 and also achieved a 10% premium to book value as at 30 September 2017.
Neil Sinclair, Chief Executive of Palace Capital, commented: "Although not a large sale in terms of our overall portfolio, the disposal of the West Molesey property further demonstrates our strategy of disposing of small properties or those where little value added can be achieved. This is part of our agreed strategy to actively manage our asset base, constantly seeking to retain and invest in better performing properties. We are also pleased to have completed the disposal of the Polestar building in Exeter as this had presented a number of management challenges since we acquired it as part of the Quintain portfolio in 2013."
Date: 22 January 2018
For further information, contact:
Palace Capital plc
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Nick Naylor / James Reeve / Asha Chotai
Tel. +44 (0)20 3328 5656
Arden Partners plc (Joint Broker)
Chris Hardie / Ciaran Walsh
Tel. +44 (0)207 614 5917
Capital Access Group (Financial PR)
Tel. +44 (0)20 3763 3400
About Palace Capital plc (www.palacecapitalplc.com):
Palace Capital is a UK property investment company admitted to trading on the AIM Market of the London Stock Exchange (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 20.0% increase in adjusted profit before tax, a 7.0% uplift in EPRA NAV per share and a 16.0% increase in dividends.