30th Sep 2021 09:26
(Alliance News) - Office-focused commercial landlord CLS Holdings PLC on Thursday said it has secured two new leases at its properties in Germany.
The FTSE 250-constituent reported "significant" new leases in Hamburg and Munich, covering 68,975 square feet of space in total.
Both buildings have been let above estimated rental value, the landlord said.
Commenting on the new leases, Chief Executive Fredrik Widlund said: "Our focus over the past year has been to implement our planned active asset management initiatives to increase occupancy and strengthen income generation across the portfolio."
CLS said it has arranged a 15-year lease with the City of Hamburg for a 45,025 square foot space on Nagelsweg, which will house the city government's building authorities department.
Under this lease, CLS has agreed to refurbish the space to suit the lease-holder's requirements. Occupation is expected in the second quarter of 2022, after the completion of the refurbishment, CLS added.
Its second lease is with healthcare group Futrue GmbH for a 23,950 square foot production and warehouse space near Munich.
The lease is for 5 years, the company said.
Futrue plans to move into the property in the final quarter of 2021, following the departure of the existing tenant, CLS said.
"These leases are excellent examples of our ability to work closely with tenants to deliver properties that suit their current and future requirements. These leases also reflect the increasing letting activity we are seeing across Germany," Widlund added.
In August, CLS reported pretax profit of GBP24.7 million in the six months ended June 30, down 22% from GBP31.5 million the year before. Revenue fell 4.8% in the same period to GBP67.7 million from GBP71.1 million. Rent collection remained high, the company said, with 99% of first-half rent collected.
In the company's interim result, CEO Widlund said he anticipated a stronger second half, as the "return to the office and our recent increased level of enquiries translates into letting deals".
Shares in CLS Holdings were trading up 1.6% at 226.45 pence each in London on Thursday morning.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
CLS Holdings