CLS Holdings is expecting to take advantage of forced sales to buy in the UK, it said this week.
Announcing a 51% leap in pretax profits to £17.1m (2001: £11.3m) for the year to December, CLS said it would be looking to make purchases “in the order of £3m-£30m”.
It is targeting non-prime offices in central London, where it expects values to fall towards the end of the year.
Vice-chairman and acting chief executive Tom Thomson said: “Vendors will have more reason than they have now to sell stock as values fall.” CLS has £65.7m of cash available.
NAV per share increased 12% to 408.7p from 365p, but the UK portfolio fell £5.7m in value.
Net rental income was up 15.25% to £60.3m from £51.1m. CLS said London rents had weakened but 40% of its London rental income came from government tenants.
Thomson said the company would continue investing heavily in France, following its acquisition of 11 properties in Paris for £33.9m last year.
“We haven’t bought in the UK for two years because we think London has become overpriced and there are better income flows in France,” he said.
The value of CLS’s portfolio grew 16.6% to £848.9m from £728.3m, while gearing rose from 10.4% to 12.4%.
