Palace Capital left with handful of assets as disposals continue
Palace Capital’s ongoing disposal strategy means it will soon be left with just six properties, valued at £54.4m.
Announcing results for the year to 31 March, chairman Steven Owen said the company had offloaded 24 assets for £112.9m since last April, as well as selling £4.4m of homes at its Hudson Quarter scheme in York.
If properties under offer are now sold, Owen added, the company will have six investment properties remaining, valued at £54.4m.
Palace Capital’s ongoing disposal strategy means it will soon be left with just six properties, valued at £54.4m.
Announcing results for the year to 31 March, chairman Steven Owen said the company had offloaded 24 assets for £112.9m since last April, as well as selling £4.4m of homes at its Hudson Quarter scheme in York.
If properties under offer are now sold, Owen added, the company will have six investment properties remaining, valued at £54.4m.
“Each of these properties has its own asset management initiatives, which are required to be completed in order to be ready for sale,” he said.
There are also 13 flats remaining at Hudson Quarter, valued at £6.6m.
The company made a loss of £9.3m, narrowed sharply from £35.8m a year ago.
“Notwithstanding challenging property and financial markets, the past year was again transformational for the group as it continued to successfully deliver on its disposal and debt reduction strategy resulting in a significantly de-leveraged balance sheet which has put the company into a substantial net cash position,” said Owen.
He added: “Commercial property and financial markets remain challenging but there are indications that UK interest rates will reduce over the next year following the sharp fall in inflation over recent months. Until interest rates reduce and confidence returns to some sectors of the real estate market, it is unlikely that there will be a material upward repricing of assets.
“Given the reduction in property values seen since the peak of the last cycle in the spring of 2022, it is considered that valuations may be close to the bottom of this current cycle.”
