PALACE CAPITAL PLC
(“Palace Capital” or the “Company”)
Chairman retirement & strategy update
Palace Capital (LSE: PCA), the Main Market listed property investment company that has a portfolio of UK commercial real estate in the regions, with a focus on the office and industrial sectors today announces that after 11 years with the Company, Stanley Davis, Chairman & Co-Founder has advised the Board of his intention to retire on 29 October 2021. A search for his successor has commenced and a further announcement will be made in due course.
The Company also today announces further detail on its future strategy, which was highlighted in the annual results published on 8 June and in the announcement of 19 July.
Chairman Retirement
Stanley has served as Chairman of Palace Capital since 2010 when he and Neil Sinclair formulated a strategy to invest in the regional property market and in this time, he has orchestrated its transformation into a Main Market listed REIT with a £275m portfolio. Palace Capital is focused on its strategy for the portfolio to close the share price discount to NAV. Stanley believes this is the appropriate time to bring in a new chairman to work on the strategy with the Board and he remains completely supportive.
Palace Capital Strategy
As a UK REIT, the Company is in the process of repositioning the portfolio to ensure the appropriate balance of income and value-add opportunities, which provide a steady and consistent income to shareholders, whilst also providing capital growth. As stated in the annual results, rent collection in the last financial year averaged 95% and the Board expects to sustain this level throughout the current financial year. At the same time, the Board will take steps to address the cost base to make it more efficient for the size of the Company.
Palace Capital will prioritise investment in the office and industrial sectors in carefully selected locations outside of London. The team will continue to utilise its strong regional network and asset management expertise to identify, acquire, and refurbish assets where appropriate, to make the space fit for purpose, with a particular regard to the growing need for buildings to satisfy improving EPC ratings.
Aligned to this, the Company will continue to execute its previously announced disposal programme with £9.4 million of disposals secured since the start of the current financial year. Palace Capital is prioritising this disposal programme as well as the sale of the apartments at Hudson Quarter, York to recycle capital into new opportunities.
The Company believes the next 12 months will provide the opportunity to release more value from its existing portfolio and build on the strong prospects for growth in the regions.