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PALACE CAPITAL PLC
Capital/Financing Update • Dec 22, 2022
4845_rns_2022-12-22_a1f50af2-fd35-4738-8855-f41e05a6cf15.html
Capital/Financing Update
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National Storage Mechanism | Additional information 
RNS Number : 5332K
Palace Capital PLC
22 December 2022
22 December 2022
Palace Capital plc
("Palace Capital" or the "Company")
Disposals and Debt Position Update
Palace Capital today provides an update on its property disposals and debt position since its half year report ended 30 September 2022 announced on 24 November 2022.
Disposals
· Since 30 September 2022, the Company has completed on investment property disposals totalling £7.6m, at an aggregate 3% premium to the 31 March 2022 book valuation. These include:
o 127 Above Bar Street, a leisure asset in Southampton, for £3.75m, reflecting a 21% premium to 31 March 2022 book valuation.
o Staple House, an office building in Winchester, for £3.55m, 10% below the 31 March 2022 book value.
o A residential unit in Banbury for £0.3m, in line with the 31 March 2022 book value.
· Apartment sales at Hudson Quarter, York have continued to progress well, providing additional unencumbered cash for the Company. A further eight apartments have completed in the period since 30 September, for a total of £3.4m, with one unit exchanged to the value £0.7m, resulting in aggregate proceeds of the 98 units completed or exchanged totalling £35.5m. A further seven units are under offer to the value of £2.8m, leaving 22 units remaining.
Debt position
· As at 21 December 2022, gross debt has reduced by 10.6% from 30 September to £79.3m (30 September 2022: £88.7m) and cash reserves totalled £12.9m, resulting in net debt of £66.4m (30 September 2022: £75.8m). Proforma loan to value ratio has reduced from 32.2% at 30 September 2022 to 29.6% as at today's date.
Commenting on today's update, Steven Owen, Interim Executive Chairman said:
"The Company continues to make steady progress with smaller asset disposals being achieved in a difficult environment.
"The Board is mindful of the potential for further instability, including interest rate rises, and therefore continues to monitor the timing of significant property disposals for the time being. In the meantime, the focus on disposal of smaller assets, active asset management and debt repayment continues."
Enquiries
Palace Capital plc
Steven Owen, Interim Executive Chairman / Matthew Simpson, Chief Financial Officer [email protected]
or via FTI Consulting
Financial PR
FTI Consulting
Dido Laurimore / Giles Barrie
Tel: +44 (0)20 3727 1000
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