Palace Capital Share Discussion Threads

[baner] 14/3/2022 12:11

should not the other larger shareholders be as disappointed with Sinclair et al, as PG would be? why should not also they look after their interest in Palace ? a fund manager as miton and hambro is of course responsible towards their own investors and must accordingly look after their investments proactively. why are they otherwise paid fees to "manage" these funds?

[nickrl] 14/3/2022 10:51

Does he have enough though to influence the BoD yet?

[cwa1] 14/3/2022 10:25

Good to see PG increasing his holding here:-

[m_kerr] 11/3/2022 16:59

i can quite easily see a mid single digit increase in portfolio value if it were to be sold, leading to a potential value of 370-390p per share.

they've sold a chunk of the portfolio (£30m) at prices ahead of book value. importantly, these were not forced sales to bring down LTV, but the lower quality stock that they wanted rid of.

[baner] 03/3/2022 18:59

i believe £1 below asset value is a more realistic number - however it could be nearer to 400p if the interest rates does not move north soon. assets are not fantastic in any sense however there is appetite in the market - the problem with Palace is the management team - enormous cost for a lousy performance. not a good combo and certainly explain the discount to NAV. no doubt the Palace shares represent attractive risk/reward, however in order to harvest on the upside, Sinclair and his entourage must be ousted.

[konradpuss] 03/3/2022 18:56

poacher, I do not think anyone is saying the company is worthless. The real problem is the unaccountability of Sinclair.

The £2 upside could be there if Sinclair departed the scene.

He has been around for a while and is a canny operator for his own benefit.

I am out currently, however I might go back in if a catalyst appears to release that value.

[poacher45] 03/3/2022 16:19

I agree Sinclair'S wages are too much but the company has good assets. However their are too many people trying to say it is worthless without any foundation when in my opinion it is sitting about £2 below asset value. The asset value will show up correctly over the next two years.

[baner] 03/3/2022 14:29

all over the place, Poacher. i do not know where to start.........

[poacher45] 03/3/2022 11:59

Hudson Quarter bought for £3.9 million
Borrowed £25 million
Loans paid back after selling 63 apartments
Profit retained on other 64 apartments less demolition, planning and archaeology costs
Plus office block when fully let worth at least 12 million.
Now you tell me where I am wrong?

[poacher45] 03/3/2022 11:58

Hudson Quarter bought for £3.9 million
Borrowed £25 million
Loans paid back after selling 63 apartments
Profit retained on other 64 apartments less demolition, planning and archaeology costs
Plus office block when fully let worth at least 12 million.
Now you tell me where I am wrong?

[baner] 03/3/2022 11:39

please do your homework better, Poacher! you are totally wrong on the HQ potential - we may see 20p from that project - over a large number of years and a considerable risk, not very impressive ! the NAV has been in decline long before the Covid outbrake. for this, shareholders have faced central costs of £4m per year, of which nearer to 10% being the cost of Sinclair alone. horrible.

[poacher45] 03/3/2022 08:33

baner you cannot say the NAV is down until you see the full impact of Hudson Quarter and the other refurbishments. Hudson Quarter on its own could add at least 75p per share to asset value. Also the asset value losses have been caused by covid. Hopefully asset values will now be above what they were before covid.

[baner] 03/3/2022 08:19

Sinclair has not delivered at all - the NAV is down in recent years - while his remuneration package is up and extremely excessive given his performance. Time to follow the highly responsible McKay Board and put the company up for sale - or simply liquidate it. To continue as is is absolutely not in the best interest of shareholders.

[cwa1] 03/3/2022 07:19

3 March 2022

Palace Capital plc

("Palace Capital" or the "Company")

Palace Capital exceeds disposal strategy targets with sale of Pelham House, Brighton

Palace Capital (LSE: PCA) the Main Market property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office & industrial sectors, announces that it has completed the sale of Pelham House, Pelham Square, Brighton for GBP1.6 million.

In April 2021, the Company announced a strategic disposal programme which identified 15 non-core properties for sale, with an aggregate value of at least GBP30 million. Pelham House is the fourteenth of the 15 properties to be sold and brings the total gross proceeds from the disposal programme to GBP31.5 million, which is 20% above the aggregate book value of the 14 properties and 12% ahead of the original purchase prices paid plus any capital expenditure.

Of the proceeds secured to date, GBP15.7 million has been allocated towards debt reduction, leaving GBP15.8 million for redeployment into properties that satisfy the Company's acquisition criteria.

Neil Sinclair, Chief Executive of Palace Capital commented, "These sales at 20% above book value have generated an ungeared 11% aggregated IRR for shareholders which with our continuing Hudson Quarter apartment sales, have further strengthened our balance sheet. Following the recent acquisition and letting activity, new income exceeds the rent lost through disposals, resulting in fewer but better quality properties. With a pipeline of potential opportunities, we look forward to updating the market on further acquisitions in due course as we continue to recycle capital."

[m_kerr] 25/2/2022 16:59

IMV this is one of the few remaining covid REIT bargains. overall they have a good spread of properties without much exposure to the structurally challenged sectors. gearing is modest and if they did liquidate (unlikely given that there is minimal inside ownership so more concerned about their jobs), a price in excess of £3.50 would be achievable IMO.

[nickrl] 23/2/2022 22:43

poacher I was in it for the long term but Sinclair and BoDs have taken plenty out of PCA whilst Hudson Qtr was coming to fruition when they should have been rewarded when it succeeded. So as they say in the Den im out.

[poacher45] 23/2/2022 09:53

The problem is baner that posters on this board expect you to buy a property one day renovate it and sell it a week later. Where as in fact when we look at Hudson Quarter it was bought the end of 2013 and is only now coming to fruition. Before anybody says it took too long even during covid the build was finished only 2 months later and on cost. The benefits of this portfolio will only be seen over the next two years. I do however agree that Sinclair has paid himself too much.

[spectoacc] 23/2/2022 09:28

You'd think Peter G would force something, caveated by the fact he hasn't done so far.

Not sure there'd be a buyer for his stake.

@baner - afraid I could only think this when reading your #899:

"Human sacrifice! Dogs and cats living together! Mass hysteria!".

[konradpuss] 23/2/2022 09:23

baner, I do not think the incumbent management will liquidate, who will?

If somebody gets control from the existing management then I agree, however the only likely candidate has gone quiet unless I have missed something.

[baner] 23/2/2022 07:35

This company will be liquidated and 350p per share handed back to shareholders, if not more. It will take max 2 years and meanwhile there will be a good divi on the shares. Excellent value for money at 240p.

[konradpuss] 22/2/2022 20:04

nickel, I wonder what Peter is planning?

It really would not surprise me to see him sell his stake.

Usually he seeks out the incumbent management and gets them to do his bidding.

I have grave doubts that Sinclair gives a ..ck about Peter or his stake and ideas.

[nickrl] 22/2/2022 19:42

Huge Edison broker notes are funded by companies so tend to pick out positive stuff but the REIT comparisons and financial forecasts tables are handy.

PCA has been jam for tomorrow for sometime with covid a convenient smokescreen why it hasn't happened so I'd take forecast with a pinch of salt. Also the fact Sinclair and other directors never make any purchases tells you everything although with the overtly generous share option schemes they don't need to bother.

[hugepants] 15/2/2022 15:02

The broker note in post #892 is a good read. Dividend will increase as the residential is sold off and more income generating assets are purchased. 7% yield in a couple of years.

[konradpuss] 30/1/2022 08:11

pd, that is fine and dandy, however where is this investment going? Rents going up, I doubt it, yields sharpening, I doubt it. Structural obsolescence oh yes.

It is a complete reflection of the company. Deals 'truffled up' in a Mayfair wine bar.

[pdosullivan] 30/1/2022 07:48

Maidenhead has tight office supply, excellent transport links and this is a well invested asset. If the tenant does exercise the break clause in 2026 I suspect that PCA won't be long finding a replacement.