CLS reports Q3 growth but warns of slower letting activity

Commercial property investment company CLS Holdings said that leasing levels over the third quarter was well ahead of last year, though the macro environment was slowing letting activity more than expected.

CLS signed 23 leasing deals in the three months to 30 September, securing £3.7m of annual rent, over 50% higher than last year at 4.8% above estimated rental value.

That took the year-to-date total to 81 deals with £10.1m of annual rent secured at 5.5% above estimated rental value.

Vacancy levels increased slightly to 13.3% from 13.2% at the half-year stage as more refurbishments were completed and letting activity was slower than forecast.

"The letting trend remains positive although we are experiencing longer decision timelines due to macro and political factors slowing progress. However, with two-thirds of our vacant spaces EPC-rated A or B, we believe we are well placed for the period ahead," said chief executive Fredrik Widlund.

CLS said its disposal program is progressing well, with a preferred bidder now selected for the Spring Mews student property development in Vauxhall, with completion expected in December. The company has also agreed further small UK disposals and has initiated sale processes for two properties in Germany.