Business
AGM Trading Update
AGM Trading Update.
About this update from Palace Capital Plc
[{"type":"text","content":"\n\n26 July 2023\nPalace Capital plc\n(\"Palace Capital\" or the \"Company\")\nAGM Trading Update\nPalace Capital provides a trading update ahead of its Annual General Meeting to be held later today.\nDisposals\n· Since 1 April 2023, the Company has disposed of eleven investment properties for £57.9 million, 6.4% ahead of the 31 March 2023 book value. Following the Preliminary Announcement on 15 June 2023, three properties have been sold for £16.8 million, the largest being a top five asset at 1 Derby Square, Liverpool, a city centre office and retail property which was sold to one of its tenants, Medicash Health Benefits Ltd, for £12.0m, 10.1% ahead of the March 2023 book value.\n· At Hudson Quarter, York, the Company has completed on five apartments for a total of £2.2 million since 1 April 2023. Currently, one apartment is under offer with 18 units remaining.\nPortfolio update\n· Since 1 April 2023, three new lettings, three lease renewals and two rent reviews have been completed across 45,000 sq ft of space generating £0.5 million of additional annualised contracted rent, 2% ahead of 31 March 2023 ERV, which demonstrates the strong reversionary potential within the portfolio.\n· The key letting during the period was at 2 St James' Gate, Newcastle where Orega, a premium, flexible, serviced office workspace provider, has entered into a 15 year management agreement to take the second and third floors totalling 22,500 sq ft of the seven-storey, 82,500 sq ft building. Following a comprehensive refurbishment to be undertaken over this Summer the operation will open in the Autumn, providing c.400 workstations. This letting significantly increases the occupancy at the property from 64.8% as at 31 March 2023 to 87.5% and, together with the letting to Softcat plc in December 2022, are the first two major lettings at St James' Gate since the property was acquired in 2017.\n· The Company achieved 99% rent collection for the 3 months to 30 June 2023.\nDebt position\n· As at 24 July 2023, gross debt was £24.0 million and cash reserves totalled £16.9 million, resulting in net debt of £7.1 million: equating to a proforma LTV of 5.2%.\n· The weighted average maturity of debt fac...