TIDMPCA
RNS Number : 8485B
Palace Capital PLC
13 October 2020
13 October 2020
PALACE CAPITAL PLC
("Palace Capital" or the Company)
Update on trading and rent collection
Palace Capital ( LSE: PCA) the Main Market listed property
investment company that has a diversified portfolio of UK
commercial real estate in carefully selected locations outside of
London, provides the following update ahead of its interim results
for the period ended 30 September 2020, which are expected to be
announced on Tuesday 17 November 2020.
Highlights:
-- 94% and 90% of rents collected for the March and June quarters, respectively.
-- 70% of all rents due on the September quarter date collected,
a higher percentage than at the equivalent stage in the previous
two quarters with November and December monthly payments to
come.
-- Cash reserves as at 30 September 2020 were GBP14.3 million
with a further GBP5.0 million available from the revolving credit
facility.
-- Eight further apartments sold since the year end at Hudson
Quarter, York, with 36 now sold at an aggregate value of GBP9.6
million.
-- Concessions granted at Sol Northampton with Accor Hotels in
return for a five-year lease extension until 2032 and with Gravity
Fitness in return for removal of the break clause, securing lease
to 2034.
-- Disposals of Meadowcourt, S heffield for GBP1.25 million, 30%
above book value, and Hyde Abbey House, Winchester sold post half
year end for GBP1.46 million, 16% above book value.
-- Minimum dividend payments of 2.5p per quarter recommenced,
with next payment due on 16 October 2020.
Neil Sinclair, Chief Executive of Palace Capital commented:
"Our financial year commenced only one week after the UK went
into a national lockdown. From that point we have been actively
engaging in meaningful dialogues with all of our tenants and the
success of this strategy, together with the quality of our occupier
base, is reflected in our rental collection levels. Our team is
composed of experts in active asset management and they have
excelled over the last few months in very difficult
circumstances."
Hudson Quarter, York:
As previously indicated, the lockdown and materials supply
problems affected construction on site, but activity did not cease.
Completion of the scheme is now due in March 2021 and it remains on
budget. Momentum on apartment marketing and sales has gathered pace
in recent weeks and contracts have now been exchanged on 36 units
at an aggregate value of GBP9.6 million.
The next phase of apartments at the Victoria block has been
launched and there is continuing strong interest in the high
quality development, which is one minute's walk from York railway
station, and buyers are able to take advantage of the stamp duty
holiday.
Having pre-let 4,500 sq ft of offices to Knights, the listed
legal and professional services business, at a record rent for York
of GBP25.00 per sq ft, we have continuing interest in HQ, our
35,000 sq ft office building, for both the entire space and
individual floors, notwithstanding the current restrictions.
Disposals:
Meadowcourt, Sheffield sold in July for GBP1.25 million, 30%
above book value, and Hyde Abbey House, Winchester sold post half
year end for GBP1.46 million, 16% above book value. Both were
uncharged properties, further supplementing cash reserves. Agents
have been instructed on four further sales of non-core assets, with
a combined book value of GBP7.5 million as at 31 March 2020.
Cash Position:
As at 30 September 2020, we had cash and available facilities of
GBP19.3 million with the continuing strategic disposals programme
expected to considerably enhance this. In the current economic
climate, there is a focus on maintaining maximum liquidity to
handle any unforeseen circumstances and to take advantage of
potential opportunities in the short to medium term.
For further information please contact:
PALACE CAPITAL PLC
Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Tel. +44 (0)20 3301 8331
Broker
Numis Securities
Heraclis Economides / George Fry
Tel: +44 (0)20 7260 1000
Broker
Arden Partners plc
Corporate Finance: Paul Shackleton / Ciaran Walsh / Daniel
Gee-Summons
Corporate Broking: James Reed-Daunter
Tel: +44 (0)207 614 5900
Financial PR
FTI Consulting
Claire Turvey / Methuselah Tanyanyiwa
Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com
The information contained in this announcement is deemed by the
Company to constitute inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014
About Palace Capital plc
Palace Capital plc (LSE: PCA) is a UK REIT that has a GBP277.8
million diversified portfolio of UK regional commercial property.
The Company maintains a disciplined investment strategy focused on
towns and cities outside of London that are characterised by
thriving local economies and strengthening fundamentals. Within
those locations the highly experienced management team select
assets that provide opportunities to drive both capital value and
long-term rental income through tailored active asset management
programmes ultimately delivering attractive shareholder
returns.
www.palacecapitalplc.com
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