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Palace Capital's cautious approach pays off

Palace Capital is growing nicely, and there's plenty of rental income too
June 8, 2017

Palace Capital (PCA) focuses on acquiring and refurbishing smaller property lots outside of London, where possible in off-market deals. It's very choosy, making just one acquisition in the year to March 2017. But this is paying off in terms of quality because the valuation uplift on the portfolio wasn't much changed at £3.1m (£3.6m in FY2016), while selling non-performing assets brought in another £3.2m in profits.

IC TIP: Buy at 372.5p

Typical of the disposals, a site in Maldon bought in 2013 for £2m met with opposition from the local authority for a change of use, and as a result the property was sold for £3.9m. The one acquisition was Boulton House in the heart of Manchester for £10.6m. Following refurbishment, the current £12 per sq ft rental income is expected to rise to nearer £16.

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