Palace Capital (PCA), the property investment company that focuses on commercial property outside London, is to buy property investment group RT Warren for £53.3m. The deal will be financed through a firm share placing to raise £65.7m and a conditional placing for a further £4.3m. RT Warren has a £14.5m debt with Barclays, and this is expected to remain in place.
Described by Palace Capital chief executive Neil Sinclair as the most exciting portfolio offered to Palace Capital for over two years, the property assets will bring 15 office buildings, four mainly retail properties and two industrial units, and has been valued at £71.8m. There are also 65 residential properties that Palace intends to sell.
Crucially, the commercial properties are located mainly in the Home Counties in areas where there is a shortage of office and industrial space, exacerbated by offices being converted for residential use. Palace Capital also added that it will be moving from the Alternative Investment Market to the official list following the completion of this transaction.
