Lakestreet Capital Partners has called for Palace Capital to remove its chairman, Steven Owen, and appoint its founders as directors.

The Swiss investment firm, which has been a shareholder in Palace since 2024 and currently holds a 22.53% stake, said it was "deeply troubled" by the amount of remuneration the chair had taken for himself and the value destruction that shareholders suffer as a result.

It has therefore requisitioned a general meeting of the FTSE listed real estate investment trust (REIT) to remove Owen.

Lakestreet also expressed concern with the current cost of a two-person board of directors, which is equivalent to 22.75% of the net property income of the firm’s two remaining properties; Owen’s remuneration being four times the amount received by the previous chairman; and his remuneration which will be three times the previous year’s amount this year.

Furthermore, Owen, who does not own a share in Palace, has extracted a 12-month notice period for his service contract, which the Swiss firm has described as an "outrageous benefit".

As a result, Lakestreet, which has a total investment in excess of £9m in the REIT, said it has lost faith in Owen and his actions have compelled it to remove him from the board.

Following the announcement, shares in Palace Capital increased by almost 8%.

Chief executive officer and co-founder at Lakestreet, Christian Kappelhoff-Wulff, said: "There is a striking disconnect between the interests of Steven Owen versus the interests of shareholders in Palace Capital. Steven Owen receives excessive remuneration while not owning a single share in Palace Capital. In other words, Steven Owen benefits handsomely, irrespective of the outcome he delivers to shareholders.

"On the other hand, Lakestreet has a substantial investment in Palace Capital. We will not be able to benefit financially unless the share price of Palace Capital appreciates or Palace Capital delivers returns on its shares. In other words, the only way for Lakestreet to benefit, is if all shareholders benefit."

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