Market wrap: Palace Capital up on strategy u-turn
Shares in Palace Capital rose by almost 5% today after the company backtracked on a recent strategy overhaul and said it would focus on returning money to shareholders.
The company, which owns regional office and industrial assets as well as York’s Hudson Quarter residential scheme, has been under pressure from activist shareholders for months over its returns.
Last month, co-founder Neil Sinclair stepped down, and earlier this month the board said it would sell its industrial assets, launch a share buy-back and focus on an investment strategy of buying offices with poor environmental credentials and turning them around.
Shares in Palace Capital rose by almost 5% today after the company backtracked on a recent strategy overhaul and said it would focus on returning money to shareholders.
The company, which owns regional office and industrial assets as well as York’s Hudson Quarter residential scheme, has been under pressure from activist shareholders for months over its returns.
Last month, co-founder Neil Sinclair stepped down, and earlier this month the board said it would sell its industrial assets, launch a share buy-back and focus on an investment strategy of buying offices with poor environmental credentials and turning them around.
Today, the company said that after taking investor feedback on board, it would now focus instead on selling a greater amount of non-core assets. It also hinted that the company itself could be put up for sale, noting that the board would “remain mindful of consolidation in the real estate sector as part of its considerations”. Three non-executive directors stepped down alongside the announcement.
The company’s shares rose on the news, climbing as high as 285p before settling at 278.5p, a month high.
Palace’s AGM will be held next week.
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