11th Apr 2025 14:20
(Alliance News) - Palace Capital PLC on Friday said it has completed the sale of two investment properties for a total of GBP14.8 million, which was 9.8% above a March 2024 valuation.
Shares in the London-based property investor were up 4.1% at 212.34 pence in London on Friday afternoon. The stock is down 8.9% over the past year, however.
The first of these sold properties was HQ Office, York - a freehold, multi-let building for a gross price of GBP10.0 million, which was sold to a retained client of STR Capital Partners at a 9.0% net initial yield. It was in line with its March 2024 valuation.
The second disposal was units 5 and 6b at Broad Street Plaza, Halifax, on a long leasehold interest to Calderdale and Huddersfield NHS Foundation Trust for GBP4.8 million. This was a 7.5% net initial yield and was 38% ahead of its March 2024 valuation.
In advance of this sale, Palace Capital repaid an outstanding GBP8.0 million loan in March 2025 to Scottish widows, leaving the firm debt-free.
The second sale also included the removal of a seven-year annual uncapped service charge shortfall landlord liability, which was estimated at around GBP400,000.
In addition, Palace Capital noted that sales activity at Hudson Quarter in York has been "muted" since November 2024 due to "wider economic uncertainty", but said the final three bedroom penthouse apartment has now been sold for GBP800,000. This was 2.2% ahead of a March 2024 valuation.
Ten further Hudson Quarter units remain available for sale, and Palace Capital anticipates further sales "in the coming months".
"Since the announcement of our interim results in November 2024, we have continued to progress our disposal strategy and are now in a stronger cash position having repaid the remaining loan, resulting in the portfolio being entirely unencumbered," said Executive Chair Steven Owen.
"At an operational level, Palace Capital continues to make good progress with its asset management activities and the management of its cost base. The company will provide additional detail on these and the strategy for its remaining properties in a trading update expected to be announced later this month. Following discussions with shareholders, we expect to announce details of a further significant return of capital, likely through another tender offer, in due course."
By Emily Parsons, Alliance News reporter
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