Palace Capital eyes acquisition of RT Warren
Commercial property and investment firm Palace Capital announced on Tuesday it had conditionally agreed to acquire the entire issued share capital of RT Warren Investments for a cash consideration of £53.3m.
FTSE AIM All-Share
739.00
16:54 01/11/24
Palace Capital
223.50p
16:35 01/11/24
Real Estate Investment & Services
2,360.11
17:14 01/11/24
In addition to the cash consideration, a bank loan of £14.5m was also set to be retained by RT Warren.
Palace Capital proposed undertaking a placement to raise £70m to finance the acquisition.
On top of its 65 residential properties, RT warren held a portfolio of 21 properties, made up of 15 office buildings, four predominantly retail properties and two industrial holdings, 90% of which were located in the Home Counties of England and were collectively valued at £71.8m.
The placing was being arranged by Arden with Allenby Capital acting as the joint-broker.
Neil Sinclair, chief executive of Palace Capital, said, "RT Warren represents the most exciting portfolio offered to Palace Capital for over 2 years. We consider the location of the commercial properties to be complementary to our existing portfolio, as well as being located in regions of the UK that are experiencing a shortage of both industrial and office space, the latter being due to Permitted Development Rights. We consider that there is a significant opportunity for considerable rental growth from this portfolio."
As of 1405 BST, shares had slipped 5.08% to 360.00p.