CLS’s deal activity for the third quarter of 2023 was up 50% on the same period last year bolstered by two significant UK transactions.
The office specialist signed 24 deals securing £2.4m in rent at 6.2% above ERV between 1 July and 30 September, buoyed by a 10-year lease with Hays Recruitment at Apex Tower in New Malden, Surrey, and a lease extension with the London Borough of Hammersmith and Fulham at the Clockwork Building, W6.
Between 1 January and 30 September the group signed 93 deals securing £10.2m of annual rent, more than 70% higher than the same period last year, at 9.1% above ERV.
Renewals for the nine months to 30 September were 2.3% ahead of previously contracted rent. Index-linked lease increases for the nine months to 30 September 2023 were 7% in Germany, 5.1% in France and 11.4% at Spring Gardens in the UK.
Fredrik Widlund, chief executive at CLS, said: “Leasing activity has increased substantially… The group is also benefiting from its high proportion of index-linked leases and a strong performance in our student and hotel operations. Underlying vacancy is stable. Consequently, the board remains confident that the group will meet its earnings expectations for the full year.
“Our 2023 refinancing activity is substantially complete and we have made further progress with refinancing our loans maturing in 2024. The group has over £120m of cash and undrawn facilities.
“We are seeing an improving lettings market and some early signs that the economic headwinds impacting the office sector are moderating. CLS is well positioned to continue to execute its operational and asset management initiatives and deliver long-term shareholder value.”
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