Business
Disposal of Tolworth property
Disposal of Tolworth property.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \nRNS Number : 3693U Palace Capital PLC 02 December 2013 \n \n\nPALACE CAPITAL PLC\nDISPOSAL OF TOLWORTH PROPERTY\n \n \nPalace Capital PLC (\"Palace Capital\" or the \"Company\"), the property company focussed on investing in the UK's secondary property market outside London, announces that it has disposed of one of its properties in Tolworth, Surrey.\n \nAs part of the Company's plan to manage its portfolio actively, the Board is pleased to confirm that it has sold a long leasehold interest in Argent Court, Tolworth in Surrey, a 12,300 sq. ft. office building. The property, which has been vacant for some time, has been sold for a cash consideration of £800,000 to a South London based firm of insurance brokers.\nThe Directors of Palace Capital believe this disposal has a number of positive benefits for the Company:\n \n· net debt is reduced by £775,000 from £20m to £19.225m, reducing the Company's interest liability by £33,000 per annum;\n· the irrecoverable expenditure mainly comprised of 'empty rates' of £110,000 per annum is no longer payable by the Company;\n· three other units on the estate are already let and are producing a rental income of £95,900 per annum, replacing the annual net deficit of £14,100 per annum inherited on acquisition; and\n· the net asset value attributable to the property was £490,000 giving rise to a profit on sale of £285,000 after costs.\n \nCommenting on the disposal Neil Sinclair, Managing Director said;\n \n\"The disposal of the Tolworth property will allow us to reduce both net debt and irrecoverable expenditure which, when taken with the new lettings announced earlier today, is further evidence of our desire to enhance the value of the Sequel portfolio through active portfolio management.\"\n-ends-\n \nDate: 2 December 2013\nFor further information contact:\n \n\n\n\n\nPalace Capital Plc\n\n\nTel. +44 (0)20 7722 7603\n\n\n\n\nStanley Davis, Non-executive Chairman \n\n\n \n\n\n\n\nNeil Sinclair, Managing Director\n\n\n \n\n\n\n\n \n\n\n \n\n\n\n\nAllenby Capital Limited\n\n\nTel. +44 (0) 20 3328 5656\n\n\n\n\nNick Naylor, Corporate Finance\n\n\n \n\n\n\n\nMa...