Palace Capital announces that it has sold 22 Market Street, an office property in Maidenhead to a client of Soor Capital for £9.6m. The sale price reflects a net initial yield of 7.3%, equating to a net price of £9.0m (after rent incentives), which is 9.7% ahead of the 31 March 2023 book value.

Following the sale and the use of some of the proceeds to repay £3.5m of bank debt, gross debt will be £20.2 million and cash reserves will be £20.1 million resulting in a net debt position of £0.1 million.

Commenting on today’s announcement, Steven Owen, Executive Chairman said: “The selective sales of properties such as Maidenhead demonstrate the steps we are taking to reduce debt and leverage in line with our strategy of maximising cash returns to shareholders.

“The Company will provide further updates on significant sales and strategic initiatives to facilitate returning cash to shareholders later in the year, the timing of which will depend on the completion of future sales. The Company’s share buyback programme continues, following renewal of the authority at the recent Annual General Meeting.”