CLS has announced a 5.6% hike in its net asset value to 1037.7p a share in the six months to the end of June.
The listed property investment company’s increase in NAV was the result of a combination of high retained earnings and the revaluation surplus on Spring Mews in London’s Vauxhall, where planning was secured in May for a large mixed-use scheme.
Overall its portfolio – which comprises secondary offices – rose in value by 1.1% in local currencies to stand at £904.4m at the end of the period.
This was driven by a 3.1% value rise in its London properties, but offset by falls across Europe, where its assets in France dropped by 0.4%, Germany by 0.2% and Sweden by 1.5%.
A statement from the group said its occupancy rate was at its highest level in more than ten years at 96.5%.
During the period, CLS successfully refinanced £117.6m of existing debt, including its largest asset, Spring Gardens. Today it announced an intention to issue a new unsecured corporate bond on the London Stock Exchange’s ORB retail bond market.
It said this was “in line with its strategy of having a diverse range of funding types and sources. Further details regarding the bond issue will be announced in due course.”
Executive chairman Sten Mortstedt said: “The first half was one of considerable achievement for the group.
“We have reduced our vacancy rates and financing costs to new historical lows, secured planning permission on our Spring Mews application, and continued to make targeted opportunistic acquisitions and investments with our liquid resources.
“The group remains focused on its core business of generating attractive shareholder returns through the effective management of property investments, and is well placed for the future.”
bridget.oconnell@estatesgazette.com
