Entire industrial portfolio sold for £34m
Regional property investment firm Palace Capital has sold its industrial portfolio to fund manager Clearbell Property Partners for £34m, in an effort to reduce debt.
The six properties, which generate annual rental income of £2.2m are: Courtauld House, Coventry; Saxon House, Kettering; Point Four Industrial Estate, Avonmouth; Black Moor Road, Verwood; Bone Lane, Newbury and Clayton Industrial Estate, Burgess Hill.
Completion of five of the properties is expected later this month with the sixth property expected to complete in early July.
On completion of the disposal, net debt is expected to around £25m and LTV based on the valuation at around 16%.
Including other asset sales ready to be disposed of in 2024, Palace Capital is estimating its net debt and LTV to be around £18m and 12% respectively.
Steven Owen, interim executive chairman said: “The disposal of the majority of the Company’s industrial portfolio is a significant step forward in reducing its debt and LTV and 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.
“The Company has capitalised on the recent stabilisation and, in some cases, the recovery of pricing in the investment property market to sell and market for sale selected properties.”
