Hamlins LLP advises Palace Capital Plc on £39 million acquisition of Sequel Portfolio and re-admission to AIM

Hamlins LLP is delighted to announce that it has advised the AIM quoted real estate company Palace Capital Plc on its proposed acquisition of the Sequel Portfolio from Quintain Estates & Development Plc for £39.25 million, alongside an associated placing of new Palace shares raising £23.5 million and a £20 million debt financing with Nationwide.

The acquisition constitutes a reverse takeover under the AIM Rules and marks a major step for Palace Capital Plc as it should enable the company to pay a dividend. The Sequel Portfolio being acquired comprises a portfolio of 24 commercial properties outside London.

This is the third transaction that Hamlins has advised Palace Capital Plc on in the past three years. The firm previously assisted the management in its move to take control of Palace Capital Plc in 2010 and on the reverse takeover of the Hockenhull Estates Portfolio – a portfolio of nine properties in North West England, in 2011.

This latest transaction draws on the strengths of Hamlins’ corporate and real estate expertise, both of which have been recently recognised in the newly published Legal 500 2013.

The Hamlins team was led by partner and Head of Corporate Daniel Bellau together with Corporate associate Sara Carpenter and Real Estate partner Alban Gordon. Quintain was advised by Olswang LLP. Nationwide was advised by DLA Piper UK LLP. The joint brokers Arden Partners Plc and Allenby Capital Limited were advised by Nabarro LLP.

Daniel Bellau, Head of Corporate at Hamlins LLP, commented: “We are delighted to have assisted our longstanding client Palace Capital Plc in reaching this significant milestone, having worked with the company and its management over several years. This is a significant deal for Palace and one that draws on our expertise in M&A, AIM and Real Estate work.

“We are starting to see a strong upturn in activity amongst our corporate and real estate clients – this is an exciting time in both the corporate and real estate transactional markets.”.

Neil Sinclair, CEO of Palace Capital Plc, commented: “This portfolio gives us an excellent platform to deliver substantial returns for shareholders and marks a major step for Palace Capital which we plan to be the first in a series. We are grateful to Hamlins for its continual dedicated hard work in assisting us to reach this stage.”

Daniel Bellau is a corporate finance partner and Head of Corporate at Hamlins LLP. He advises on all aspects of corporate law, specialising in public and private mergers, M&A, private equity investments and equity capital markets transactions.