7th Nov 2013 12:16
LONDON (Alliance News) - Property investment company CLS Holdings said "solid progress" has been made across the business between July 1 and November 6 as a number of profitable acquisitions were completed and its vacancy level was kept low at 4.4%.
In an interim management statement, the company said it acquired 34 properties, which are primarily UK government-occupied, for GBP118.6 million and two properties in London totalling GBP5.9 million during the period.
CLS said 49% of its rental income now comes from UK government bodies, while 27% is generated from major corporations and 61% is subject to indexation.
The company, Wednesday said it had signed a franchise agreement with InterContinental Hotels Group for an undisclosed fee. The hotel giant will open a Staybridge Suites Hotel at CLS' mixed-use development in Vauxhall, south London.
Internationally, CLS said its businesses had experienced mixed fortunes.
In France lettings in Paris are down 30% in 2012 as the economy remains weak, concerns continue over the politician direction and low confidence and rising unemployment.
However, the German economy, "continues to show superior strength to any other Eurozone country", with enquires in Berlin and Munich up, where prime rents are growing and the firm vacancy rate has dipped to 3.8% from 4.2% in June.
Occupancy of the group's only directly held property in Sweden, Vänerparken, to the north of Gothenburg, has remained unchanged with a vacancy of 1.7% by rental value and negotiations are under way regarding certain lease renewals due in 2015.
Financially, the company said it has 57 loans from 23 lenders, and two unsecured corporate bonds while none of the loan covenants is in breach and none of the debt has been securitised.
The stock was trading at 1,228.25 pence Thursday morning, up 13.25 pence or 1.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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