Ex-Palace chief exec Sinclair plots next venture

The former chief executive of Palace Capital is preparing his next venture, weeks after leaving the FTSE REIT he founded 12 years ago. Neil Sinclair has registered a new vehicle, Pristine Capital, while he maps out a fresh real estate investment business. Although details of the new company are not decided, Sinclair told EG that it will raise external capital and focus on the regions. Speaking as he travelled to York, where Palace Capital has developed the mixed-use Hudson Quarter scheme, Sinclair said: “I’ve got a lot of faith in York. I think it’s a city that’s going to be something in the next 10 years, what with this massive development they’re planning at the station… I want to use my expertise in the regions, so I have every intention in the next eight weeks to go to Leeds, Manchester, Liverpool, because I think that’s where my next vehicle [will focus].” Sinclair left Palace Capital suddenly last month, the company claiming he considered it “the right time” after a strong trading update and set of results. In the weeks before, Sinclair had pushed back against shareholder criticism over the company’s returns. Palace Capital has since announced a new strategy of focusing on improving the environmental credentials of so-called brown offices. At 79, Sinclair is adamant that retirement does not beckon yet – “I’m much too young for that,” – and ahead of Pristine Capital’s launch he is also looking at non-executive directorships. He believes his more than 50 years of experience could be invaluable for less mature businesses now in unchartered territories, including an unnamed company at which he recently met with the “relatively young board” to discuss a role. “I said, ‘Look guys, I’ve got to tell you, I’m not exactly 35’,” said Sinclair. “And they said, ‘That’s the reason we’re talking to you – we’ve never seen inflation, we’ve never seen rising interest rates, we’ve never experienced the bank knocking on the door, which we think might be coming in the autumn – how do you handle it? Have you experienced all those things?’ I said, ‘of course I have’.” His advice? Be upfront with financiers during tough times in the market. “I said you just have to know how to talk to the bank,” he said. “If you talk the right way, and they trust you, you’ll be OK. If you don’t, you won’t. It’s as simple as that… Don’t give any bullshit, be honest. They’re used to bad news, so if you’ve got bad news to tell then, tell them.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews