Palace Capital PLC said on Friday it has successfully sold all but one of its industrial properties to Clearbell Property Partners IV LLP after its portfolio’s like-for-like value declined in the latest financial year.

Palace Capital, a London-headquartered regional property investment company, said it successfully disposed of six industrial properties to Clearbell Property Partners, a fund managed by Clearbell Capital LLP. Contracts were exchanged for £34.0 million. Palace Capital said the properties generate £2.2 million in annual rental income and it expects all six to complete by mid-July.

Palace Capital said it will deploy the sale proceeds to reduce its debt. Current net debt is £58.8 million as of March 31 down from £73.6 million a year earlier.

It sold eight investment properties during the financial year that ended March 31 for £15.6 million, 8.0% ahead of book value at the time, Palace Capital said. It sold 23 apartments at Hudson Quarter in York for a total of £10.1 million and sold four more this year for £1.7 million.

Palace Capital said its portfolio was valued on March 31 at £192.4 million, representing a like-for-like decline of 13% since September 30. The company achieved 99% rent collection in the latest financial year and occupancy was steady at 87.7% compared to 88.5% a year before.

Throughout the previous financial year, Palace Capital acquired 2.6 million shares for £6.7 million under its share buyback programme.

Steven Owen, Palace Capital’s interim executive chair, said: ‘The disposal of the majority of the Company’s industrial portfolio...means we can remain focussed on maximising cash returns to shareholders. The company is in a strong financial position and its low leverage provides it with the flexibility and optionality regarding the timing of further disposals and other strategic initiatives.’

Shares in Palace Capital were up 0.3% in London on Friday afternoon at 216.55 pence each.

Copyright 2023 Alliance News Ltd. All Rights Reserved.