Citadel Holdings, the AiM-listed spin off from CLS Holdings, which started with four properties in Paris and Lyon last July now has an eleven-strong portfolio worth some £50.6m (FFr500.6m). Net assets per share are 106.8p (FFr10.57).
And Glyn Hirsch of CLS Holdings which manages the portfolio says he expects the the company’s holdings to double in the next six months.
Set up to take advantage of the recovering French market, Citadel has been taking advantage of cheap local borrowing rates. Citadel’s loans cost just 4.9% against the portfolio’s yield of 8.7%.
Annual rental income, based on the five months to end-December, is running at £4.4m (FFr43.5m) and CLS is now stepping up its active management role and building up relationships with existing tenants.
In Paris a surrender was agreed with one tenant on a short lease and the space immediately re-let to Union Banque of Paris at a better rent for a six year term. Negotiations are now underway with another tenant which will free-up space in one building to be re-let to a second fast-growing occupier. In Lyon refurbishment of the D’Aubigny and Forum buildings in complete and work at Park Avenue now underway.
Operating profit was £0.7m (FFr6.8m), but the increasing strength of sterling throughout the year resulted in a £1.1m foreign exchange book loss on cash held and net equity invested. After £ was charged to the profit and loss account, the bottomline showed a pre tax loss of £0.1m.
EGi News 26/03/98
