Shareholder Revolt Rocks Palace Capital as Top Investor Moves to Oust Chairman

LONDON, UK – January 05, 2026

A dramatic corporate showdown is unfolding at Palace Capital Plc, as its largest shareholder, Lakestreet Capital Partners AG, has formally moved to oust the company’s chairman, Steven Owen. In a stunning display of shareholder activism, the Swiss investment firm, which holds a 22.53% stake in the FTSE REIT, has requisitioned a general meeting to remove Owen and install its own founders on the board.

The move stems from what Lakestreet describes as deep-seated concerns over “excessive” executive remuneration and a fundamental misalignment between the chairman’s interests and those of the company’s shareholders. The activist investor, which has a look-through investment exceeding £9 million in Palace Capital, alleges that Owen's compensation is draining value from the company at a critical time.

A Dispute Centered on Pay and Performance

At the heart of Lakestreet's explosive list of grievances is the remuneration of Chairman Steven Owen. The investor claims Owen has received approximately £220,000 annually for the past four years, a figure it deems exorbitant, especially when compared to the £195,000 paid in total to the company's previous five-person board. According to Lakestreet, Owen’s pay is four times that of his predecessor.

The situation is poised to escalate, with Lakestreet projecting Owen’s remuneration could soar to £720,000 for the current financial year. This threefold increase is allegedly due to Owen reallocating units from a Short Term Incentive Plan (STIP) from departing executives, or “good leavers,” to himself. This has drawn sharp criticism, particularly as Palace Capital is in the final stages of a strategy to sell off its assets and return capital to shareholders.

Lakestreet argues that the board's costs are unsustainable. With only two properties remaining in its portfolio, in Newcastle and Northampton, the firm calculates that the cost of the current two-person board is equivalent to an astonishing 22.75% of the net property income from these assets. “This ratio is wholly unacceptable and demonstrates the urgency of our intervention,” the firm stated in its press release.

Compounding the issue is the revelation that Steven Owen does not own a single share in Palace Capital. This lack of personal investment, or “skin in the game,” is a major point of contention for Lakestreet, which believes it creates a severe disconnect. Christian Kappelhoff-Wulff, CEO of Lakestreet, commented, “There is a striking disconnect between the interests of Steven Owen versus the interests of shareholders in Palace Capital. Steven Owen benefits handsomely, irrespective of the outcome he delivers to shareholders.”

Further fueling the fire is Owen's 12-month notice period, which Lakestreet slammed as an “outrageous benefit” that could guarantee him another £220,000 after the company’s asset realization strategy is complete.

Governance and Strategy Under Scrutiny

Beyond the headline-grabbing figures, Lakestreet’s requisition raises broader questions about corporate governance and strategic direction at Palace Capital. The investor has accused Owen of deliberately extending the company's financial year from its traditional end date of March 31 to September 30, 2026. Lakestreet alleges this was a maneuver to delay the disclosure of his remuneration, obscure its scale, and postpone the next Annual General Meeting (AGM), thereby entrenching his position on the board and denying shareholders a timely vote.

This activist campaign does not appear to have emerged from a vacuum. Lakestreet noted a pattern of shareholder dissatisfaction, pointing out that Owen received significant “NO” and “ABSTAIN” votes regarding his re-election at the company's AGMs in 2023, 2024, and 2025.

In response, Lakestreet is proposing a radical change in leadership. It seeks to appoint its founders, Christian Kappelhoff-Wulff and Valentin Pierburg, as directors. In a clear signal of their intentions, the firm has pledged that its proposed directors will not take any fees for their work. Their stated goal is to accelerate the sale of the remaining assets, eliminate unnecessary costs, and maximize returns for all shareholders.

Kappelhoff-Wulff emphasized their alignment with other investors, stating, “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 and / or Palace Capital delivers returns on its shares. In other words, the only way for Lakestreet to benefit, is if all shareholders benefit.”

A Path to Resolution or a Boardroom Battle?

While gearing up for a fight, Lakestreet has left the door open for a resolution, outlining a stringent set of six conditions under which it would consider rescinding its requisition. These demands effectively serve as a public ultimatum to the current chairman.

The conditions include Owen agreeing to complete the asset sales for a total fee of £40,000, waiving his 12-month notice period, and, most pointedly, using the £720,000 he is set to receive this financial year to purchase Palace Capital shares in a personal capacity. Further demands include reverting the financial year-end to March 31, holding an AGM no later than June 2026, and immediately complementing its tender offer strategy with on-market share buybacks to protect the company's net asset value.

For its part, Palace Capital has remained tight-lipped. The company issued a brief statement on January 5, 2026, acknowledging receipt of the requisition and confirming its largest shareholder's proposal to remove the chairman. The board, which currently consists of Owen and Senior Independent Director Mark Davies, stated only that it would “consider the proposals and make further announcements in due course.”

The market and fellow shareholders now await a detailed response from the Palace Capital board. The coming weeks will determine whether this escalates into a full-blown proxy battle for control of the company or if a settlement can be reached, but the first shot in a war for the future of Palace Capital has now been decisively fired.