Investing in real estate in the right sectors, in the right locations, at the right price
Our £280 million property portfolio is invested in areas of the UK market that offer good prospects for income and value growth.
The team specialises in off-market corporate acquisitions which are tax efficient and have minimal purchase costs to absorb. We remain disciplined in our asset selection, leveraging our strong and extensive property relationships.
Diversified outside London
The portfolio has grown significantly over the last few years. It is diversified by location, sector and tenants, with a strong focus on the office, industrial and leisure sectors. Demand for office and industrial space outside London remains high and, with limited supply, this is creating good demand/supply dynamics and prospects for rental growth. The yield differential between London and the regions remains above average, with limited development taking place creating upward pressure on rents in growth locations.
We are entrepreneurial in our approach to stock selection. We are not restricted to one sector, therefore we are able to evaluate each opportunity on its own merits and limit our exposure to market fluctuations in any one sector.
Active Asset Management securing growing income
Palace Capital operates a total return model and income is a key component of this, particularly at a time when real estate has already benefitted from significant capital returns from market yield compression. We apply innovative asset management strategies in order to unlock potential and grow sustainable cash returns.
Our focus is on growing, strengthening and lengthening our income and creating assets that are well positioned for the future. Property refurbishments, developments and planning permissions are achieved to reposition assets to maximise value. We have established a core portfolio of sustainable income producing assets which has enabled us to reward investors with a progressive dividend. Furthermore, we also have the flexibility to re-invest surplus cash to refurbish, reposition and recycle property to grow the underlying capital values of the existing portfolio.
Experienced and aligned management team
The management team has strong relationships across the UK regions and extensive property and financial backgrounds. We have a strong alignment of interest with shareholders through our c5% shareholding in Palace Capital and Performance Share Plan.