|
Palace Capital PLC on Monday said that following its strategic review, it will change its business to become an ESG-driven regional office market firm, starting with the proposed sale of the company's industrial portfolio.
The industrial portfolio comprises seven assets with a valuation of £46.5 million as at March 31. Once the sales are completed, the proceeds will go towards improving the existing regional office portfolio as well as new acquisitions that offer environmental, social, and corporate governance-related prospects.
However, if Palace Capital is unable to make any new acquisitions in line with its new criteria, it will then work on returning excess capital to shareholders.
In addition, the London-based property investment company has launched a share buyback programme for up to 5% of its total equity.
Palace Capital's new strategy will be to create value from offices with low energy performance certificate ratings, and through refurbishment and other initiatives will look to increase these ratings, and in turn generate increase rental and capital values.
‘This is a transformational strategy that builds on the strong platform we already have in place but will provide us with a clear focus and distinct differentiation. The board believes this change in our strategy considerably enhances the investment case for the group and is a key step in the board's commitment to maximising value for shareholders and closing the current share price discount to net asset value,’ said Interim Executive Chair Steven Owen.
Shares in Palace Capital were up 2.2% at 272.24 pence on Monday in London.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
