Palace Capital almost wipes out debt with further sales

Palace Capital has completed the sales of three more properties for £15.2m, almost wiping out its debt. The properties, in East Grinstead, Sutton and York, were sold at 2.3% below valuation. The company, which pivoted to selling off assets to return cash to shareholders in 2022 after a proposal to improve brown buildings was rejected, said “several properties” were currently under offer. Palace used part of the proceeds to fully repay its floating rate £5.6m loan with Barclays, which carried an interest rate of 7.1% Gross debt now stands at £8.3m, with cash reserves of £5.6m and a proforma LTV of 2.5%. Executive chair Steven Owen 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.”