This is a notable move from Palace Capital- shifting from an industrial-to-office focus, underpinned by the prospect of creating value from offices with low EPC ratings.
As regulatory burdens tighten ("EPC B by 2030"), we will no doubt see more investors, who can fund capital expenditure, seek out those assets that might otherwise become "stranded". This note from Savills merits a read. As it reported last year, 87% of the office stock in the major office markets throughout the UK has an Energy Performance Certificate (EPC) of 'C' or below. The opportunities with existing stock are clearly out there.
The group’s business review concluded it can make far greater impact with its Environmental, Social and Governance (ESG) strategy in relation to its current and future office portfolio than it can with its industrial portfolio.
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