Palace Capital PLC
("Palace Capital" or the "Company")
Demolition of Hudson House, York
Palace Capital plc, the property investment company that focuses on commercial property predominantly outside London, announces that it has accepted a tender for the demolition of Hudson House, Toft Green, York ("Hudson House") and the appointed contractor is now on site. The demolition is scheduled to take approximately seven months.
Hudson House is an office building, built in the 1960s within York's City Walls and a one-minute walk from York Railway Station, with a net floor area of 103,000 sq ft on a two acre site. The Company was granted planning permission in August 2017 to demolish the existing property and erect four new buildings comprising 127 apartments, 34,000 sq ft of offices, 5,000 sq ft of other commercial/restaurant space and car parking.
The Company has instructed its rating advisers to apply to the Valuation Office for the property to be removed from the Valuation List as it will no longer be capable of beneficial occupation. If approved, this will reduce the annual outgoings of the Company by approximately £750,000 per annum as empty rates and service charge will no longer be payable.
Neil Sinclair, Chief Executive of Palace Capital, commented: "This is the first stage in implementing the planning consent for this exciting scheme close to York Station in one of the fastest growing cities in the UK. At the same time, we will be reducing our outgoings by a very significant amount thus increasing the net income for the benefit of our shareholders."
Date: 12 February 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.