CLS turns to Germany as Brexit unsettles UK property market

CLS Holdings said it was shifting property investment towards Germany amid Brexit jitters in the UK as the company reported a near-doubling of annual profit after selling its Vauxhall Square site in London.

Pre-tax profit for the year to the end of December jumped by 91.2% to £191.4m from £100.1m. Net asset value per share increased 17.2% to 252p at the end of December from a year earlier.

The FTSE 250 company disposed of properties with proceeds of £242m during the year, including the Vauxhall Square development in London for £144.1m.

With Brexit causing uncertainty in the UK property market the company shifted its focus towards Germany, selling £25m of properties but spending £188m in Europe’s biggest economy. The UK’s share of CLS’s portfolio shrank to 52% from 61% during the year while Germany grew to 32% from 23%. France was unchanged at 16%.

Henry Klotz, executive chairman, said: “We have seen some uncertainties in occupier demand and investors' decisions in the UK following the referendum on Brexit. However, the German economy is performing strongly, and we are seeing attractive investment opportunities despite increased competition. In France, market sentiment has improved during the year.”