6 September 2021
PALACE CAPITAL PLC
("Palace Capital" or the "Company")
Palace Capital crystallises value with West Sussex industrial sale
Transaction in line with £30m disposal strategy, with more than £10m of sales complete
Palace Capital (LSE: PCA) the Main Market listed property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London but focusing on the office and industrial sectors, has further advanced its disposal programme with the sale of a 9,600 sq ft industrial unit in Rustington, West Sussex. It has been sold to a private property investment company for £860,000 which is above book value and a price representing close to a 135% uplift on the value of the asset when Palace Capital acquired it in 2014.
The transaction is in line with Palace Capital's disposal strategy which targets £30 million of sales this year, comprising properties that are either non-core or where maximum value has been created through the conclusion of business plans. This property was originally let to June 2021 at a rental of £36,000 per annum exclusive, but as part of a tailored value add programme agreement was reached for a new 10-year lease with Precision Products (Brighton) Ltd on a rising rent to £65,000 per annum exclusive in June 2025. The business plan for the asset has now completed, culminating in its sale.
Neil Sinclair, Chief Executive of Palace Capital commented: "We continue to progress well with our disposal strategy, with over a third of targeted sales now complete. With this particular transaction, we were keen to crystallise the value we had created since acquisition, following the completion of our asset management plan, and to take advantage of the current market for purpose built industrial units. While our sales programme is ongoing, we are also actively working to identify appropriate investments with a view to recycling the proceeds into accretive opportunities."
Flude Property Consultants acted for Palace Capital on the sale.
For further information please contact:
PALACE CAPITAL PLC
Neil Sinclair, Chief Executive
Stephen Silvester, Chief Financial Officer
Tel. +44 (0)20 3301 8331
Heraclis Economides / George Fry
Tel: +44 (0)20 7260 1000
Arden Partners plc
Corporate Finance: Paul Shackleton / Elliot Mustoe
Corporate Broking: James Reed-Daunter
Tel: +44 (0)207 614 5900
Claire Turvey / Katie Hughes
Tel: +44 (0)20 3727 1000
About Palace Capital plc
Palace Capital plc (LSE: PCA) is a UK REIT that has a £274 million diversified portfolio of UK regional commercial property. The Company maintains a disciplined investment strategy focused on towns and cities outside of London that are characterised by thriving local economies and strengthening fundamentals. Within those locations the highly experienced management team select assets that provide opportunities to drive both capital value and long-term rental income through tailored active asset management programmes ultimately delivering attractive shareholder returns.