Palace Capital southern disposals total £7.6m

Property investment specialist Palace Capital has disposed of three properties in the south since 30 September 2022, totalling £7.6 million.

Together, the three properties represent a 3 per cent premium on book valuation they were given on 31 March 2022.

Southampton’s 127 Above Bar Street, in the city’s Cultural Quarter, was sold for £3.75 million, a 21 per cent premium on the March valuation. The property, which originally opened in 1935 as the city’s main cinema, was marketed by agents Green & Partners.

In Winchester, Palace Capital disposed of Staple House for £3.55 million – 10 per cent below the book value of 31 March 2022. Palace Capital originally acquired the property in 2018 for £3.925 million. Colliers acted as property agents.

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The third property was a residential unit in Banbury which sold for £0.3 million, meeting the 31 March book value.

The firm also reported that, as of 21 December 2022, its gross debt has reduced by 10.6 per cent against 30 September, taking it down to £79.3 million, and currently holds cash reserves of £12.9 million, leaving a net debt of £66.4 million.

Steven Owen, Interim Executive Chairman said: "The Company continues to make steady progress with smaller asset disposals being achieved in a difficult environment.

"The Board is mindful of the potential for further instability, including interest rate rises, and therefore continues to monitor the timing of significant property disposals for the time being. In the meantime, the focus on disposal of smaller assets, active asset management and debt repayment continues."

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Featured image: 127 Above Bar Street. Credit: Green & Partners