LONDON, UK: Palace Capital, the property investment company that has a diversified portfolio of UK commercial real estate, has completed the sale of Bridge House, High Street in Weybridge, Surrey as part of its £30 million programme of non-core disposals.
The asset is unencumbered and therefore the net proceeds of the £3.7 million sale, which is at a 6% premium to book value, will revert to the Company.
Following the latest disposal, Palace has now completed £9.4 million of strategic sales since the start of the new financial year in April, reflecting a third of its stated disposal programme by value.
Proceeds will ultimately be recycled into opportunities that meet the Company’s strict acquisition criteria and in line with its strategy to create and maximise value from carefully selected assets in those regional towns and cities which display the right growth fundamentals that can deliver value creation alongside Palace’s asset management expertise.
The Company has also agreed a further 7 residential sales at Hudson Quarter in York to the value of £2.4million, with 70 apartments now remaining. A total of 50 apartments at Hudson Quarter have been sold and completed, delivering an aggregate of £15 million, which has been used to reduce the original £26.5 million development facility to its current level of £5.7 million. The Company expects to have the facility paid down in full by the end of the current calendar year.
Neil Sinclair, Chief Executive of Palace Capital commented: “These sales further strengthen our balance sheet as we work towards ensuring that we are well positioned to take advantage of investment opportunities that meet both our pricing and acquisition criteria.
We believe that, as Government restrictions continue to lift and the market returns to normal operation, such opportunities will begin to emerge towards the end of this year. In the meantime, interest in our disposal pipeline as well as the remaining residential units and commercial space for rent at Hudson Quarter is strong, as we continue to see growing appetite for regional city centre properties post pandemic.”
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.
Palace Capital PLC share price
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16 Jul, 4:29 pm GMT+1 ·Disclaimer