Regional property investment firm Palace Capital has announced positive financial results despite economic uncertainty as it forges ahead with investments in York, Leeds and Halifax
The firm is redeveloping a two-acre site that is a minute’s walk from York Railway Station within the city walls. It will include 127 flats, 5,000 sq ft of retail/restaurant space, 34,000 sq ft of Grade-A office space and 5,000 sq ft of other commercial uses, located in four buildings around a landscaped central courtyard.
In the financial year ended March 31 2019, the company achieved a profit before tax of £6.4 million.
It said it had secured significant progress on the Hudson Quarter York development.
Palace Capital Chairman, Stanley Davis, commented: “We’ve delivered another set of positive results against an uncertain economic backdrop, generating a total property return of 7.1 per cent well above the UK Quarterly Property Index - testimony to our strategy of focusing on selected regions outside of London.
“Having taken extensive independent advice, it is clear that Palace Capital has now reached a certain scale where the benefits of converting to a REIT are tangible and we are convinced that this is the best course to support our total return strategy as the company continues to grow.
“The board is therefore recommending that the company converts to a REIT, which will also unlock new pools of capital and improve liquidity.”