Improved outlook for CLS

10th Nov 2010 14:17

Property investor CLS Holdings says that falling vacancy rates are helping rental values to stabilise in London. CLS says there are good opportunities to acquire secondary properties and with more than £125m of liquid resources available CLS is in a good position to take advantage. CLS has bought Apex Tower in New Malden for £21.5m. This property generates rents of £1.86m a year. CLS is also developing two sites in Vauxhall. In contrast to the UK, demand in France significantly exceeds supply with prime yields falling from 5.75% to 5%. German market activity has picked up strongly and CLS is developing two properties. The market value of the 29.99% stake in Stockholm-listed Catena would add 35p a share to the NAV. Richard Tice takes over as chief executive at the beginning of 2011.