Palace Capital disposal strategy pays out
Palace Capital has raised £31.5m from the disposal strategy it launched in April last year.
The regional investor sought to raise at least £30m from the sale of 15 properties identified as non-core. The completion of the sale of the 14th of those assets – Pelham House in Brighton – for £1.6m, pushes the group over its target.
Palace said the proceeds received so far from the disposals were 20% above the aggregate book value of the 14 properties and 12% ahead of the original purchase prices paid plus any capital expenditure.
Palace Capital has raised £31.5m from the disposal strategy it launched in April last year.
The regional investor sought to raise at least £30m from the sale of 15 properties identified as non-core. The completion of the sale of the 14th of those assets – Pelham House in Brighton – for £1.6m, pushes the group over its target.
Palace said the proceeds received so far from the disposals were 20% above the aggregate book value of the 14 properties and 12% ahead of the original purchase prices paid plus any capital expenditure.
Of the funds secured so far, some £15.7m has been allocated towards debt reduction, leaving £15.8m for redeployment into new assets.
Chief executive Neil Sinclair said: “These sales at 20% above book value have generated an ungeared 11% aggregated IRR for shareholders which, with our continuing Hudson Quarter apartment sales, have further strengthened our balance sheet. Following the recent acquisition and letting activity, new income exceeds the rent lost through disposals, resulting in fewer but better quality properties. With a pipeline of potential opportunities, we look forward to updating the market on further acquisitions in due course as we continue to recycle capital.”
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