Palace Capital almost debt-neutral after latest sale

Palace Capital has sold an office block in Maidenhead, Berkshire, for £9.6m as it continues its disposal strategy. The REIT sold 22 Market Street to a client of Soor Capital, at a net initial yield of 7.3%. The net price of £9m, after rent incentives, is 9.7% ahead of the March 2023 book value. Some of the proceeds will be used to pay off £3.5m of debt, reducing total debt to £20.2m. The company now has cash reserves £20.1m, meaning its net debt position is £100,000. Executive chairman Steven Owen said: “The selective sales of properties such as Maidenhead demonstrate the steps we are taking to reduce debt and leverage in line with our strategy of maximising cash returns to shareholders.” He added that “further updates on significant sales” would be announced later in the year. View investment comparables in Maidenhead >> To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews