Palace Capital Drives ESG Agenda Across Regional Office Portfolio

It aims to attribute offices, such as D (brown) rated buildings, with higher ratings (B, green offices), improving their carbon footprint, generating income and capital value and reducing the risk of obsolescence.

According to the firm, to execute the move, its seven-strong industrial portfolio, which was valued at £46.5m as of 31 March 2022, will be sold.

It will re-invest the funds to improve its existing regional portfolio and invest in new opportunities in the market that offer ESG enhancing qualities.

Gravis Capital Management looks to IPO co-living REIT

The company's interim executive chair, Steven Owen, said: "This is a transformational strategy that builds on the strong platform we already have in place but will provide us with a clear focus and distinct differentiation.

"The Board believes this change in our strategy considerably enhances the investment case for the Group and is a key step in the Board's commitment to maximising value for shareholders and closing the current share price discount to NAV."

If the firm fails to find acquisition partners, it said it would consider returning excess capital to shareholders.

It has sold £4.5m of non-core investment properties since 31 March 2022. Further sales are expected to be made throughout the year.

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