7 February 2024
Palace
Capital plc
("Palace
Capital" or the "Company")
DISPOSALS
AND DEBT UPDATE
Palace Capital (LSE: PCA) announces
an update on disposals and its debt position since the Company last reported on 15 November 2023.
FY24 Disposals
·
The Company has unconditionally
exchanged or completed on the sale of three investment properties
for £15.2 million which, after adjusting for rent incentives, is
2.3% below the March 2023 valuation. The sales comprised: Bridge
Park, East Grinstead for £7.2 million; High Street, Sutton for £3.6
million; and Lendal & Museum Street, York for £4.4
million.
· Several properties are currently under offer which, if they
all complete in the next few months, will provide the Company with
various options for returning capital to shareholders, including a
tender offer.
·
Sales activity at Hudson
Quarter continues with two apartments totalling £1.4 million under
offer, leaving 16 units remaining.
Balance Sheet and Debt
· The Company utilised part of the sale proceeds to fully repay
its floating rate £5.6 million loan with Barclays, on which the
most recent interest rate was at 7.1%. Consequently, the Company
only has the Scottish Widows debt facility of £8.3 million
outstanding, which is at a fixed interest rate of 2.9% until July
2026.
·
Only one asset is secured against the
Scottish Widows loan, therefore every other investment property and
all residential apartments are unencumbered, thus enabling the
Company to have complete control over the timing of future
disposals.
· As at
6 February 2024, gross debt was £8.3 million and cash reserves
totalled £5.6 million, resulting in net debt of £2.7 million and a
proforma LTV of 2.5%.
Commenting on today's update, Steven Owen, Executive Chairman
said:
"Against the backdrop of challenging
property and financial markets, we have continued to progress our
disposal and debt reduction strategy with the result that the
Company is in a strong financial position with the entire portfolio
virtually unencumbered. It is expected
that further progress regarding disposals
and options for returning capital to shareholders, including a
tender offer, will be announced in the coming months."
Palace Capital plc
Steven
Owen, Executive Chairman
info@palacecapitalplc.com
Financial PR
FTI
Consulting
Dido Laurimore / Giles Barrie
Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com