Palace Capital selling 50 flats to Barnet council

23rd Nov 2018 10:56

(Sharecast News) - Property investment company Palace Capital has exchanged contracts to sell 50 residential units for a total consideration of £18.2m, it announced on Friday, reflecting 97% of their book value, to the London Borough of Barnet.The London-listed firm said the units were part of the 65 acquired in the RT Warren portfolio in October 2017, of which three were sold in February for £1.25m.It said the 50 residential units, which were all debt free and uncharged, currently produced a gross income of £0.62m per annum.Completion for each respective unit sold would take place when they became vacant, the board explained, with all the properties expected to be sold on or before 31 March next year.The funds from the sales would be added to the company's cash reserves, to be ultimately deployed towards new acquisitions that met the company's selective acquisition criteria, Palace Capital explained."We have found an excellent buyer and achieved a very satisfactory price within 3% of our book value," said chief executive Neil Sinclair."We intend to market the remaining 10 units separately in early 2019."The sale of these units has always been one of our key action points on the Warren Portfolio and we are pleased to have succeeded in this regard."