Palace Capital reduces debt through office building disposal

26th Mar 2014 09:10

Property investment group Palace Capital has sold its Bonded Warehouse office building in Cardiff as part of its active management of the Sequel Portfolio, acquired in October 2013.The 17,375 square foot property located in Atlantic Wharf was sold for £1.1m, which after costs represents a 20% premium to its book value.The majority of the net proceeds will be applied towards the reduction of its debt. The £20m debt facility taken out with Nationwide at the time of acquisition of the Sequel portfolio will be reduced to £17m.Neil Sinclair, Managing Director said: "I am pleased to report the disposal, at above book value, of The Bonded Warehouse, Cardiff. This represents a further example of active portfolio management and results in our debt on the Sequel Portfolio having fallen from £20m to £17m in a little over five months from its acquisition. We look forward to reporting our second interim results later this week."As of 09:30 the share price had risen 1% to 257p.WS