 Skyship - You would think so but here are a few of the comments submitted with the recent planning application for change of use. As the letter is in the public domain I presume that it could be shown here but nevertheless I have only detailed a few general comments:
• Aldgate and Whitechapel does not mirror the wider London market and has the highest Zone 1 vacancy rate.
• The main reason for discounting buildings in the submarket is location rather than quality of product.
• Leasing voids on best-in-class accommodation in Aldgate & Whitechapel are up to 55 months without buildings being fully-let.
Artesian falls within the Aldgate & Whitechapel submarket which, unlike the City Core and the more popular City Fringe submarkets such as Farringdon and Southbank, has not seen demand for office space recover following the Covid-19 pandemic.
• Total office take-up in the submarket for 2022 was just 70,800 sq ft, 56% down on the 5-year average
• Only 5,000 sq ft is under offer in the submarket, 93% down on the 5-year average.
- Aldgate & Whitechapel has the highest vacancy rate (16.2%) of any submarket in Central London outside of Canary Wharf.
- This is a best-in-class development, the quality of the product is unquestionable, the location is the problem and the most common reason for occupiers discounting the property or not viewing in the first instance.
- The occupier viewing levels for stock in the submarket are some of the lowest in London
- Actively marketing 9 Prescot Street since March 2020.
- The most common reason for discounting Artesian is location or not having educational use secured.
-We were unsuccessful in securing them despite offering very tenant-favourable terms. |
strath - did we view the same Presentation?
They said 21 enquiries, inc. 6 universities. Only went on the Market at the end of November; so far too early to write it off as a white elephant - especially when one considers its prime location. |
I've also remained largely positive and added to my holding recently but it's to be hoped that The Artesian is their only white elephant and it would be interesting to know if the recent NAV update includes valuing this one at it's revised standing. |
Obviously struggling to let The Artesian and an interesting reference to seeking alternative use for educational purposes per slide 18 of the presentation. There are a number of planning details under the London Borough of Tower Hamlets website of which the most interesting is the letter from Cushman's dated 02/01/24. |
ghhghh - That director bought a large number of shares after the tender offer, effectively using the money raised from the offer to increase her stake. |
@Sky developments cost 50m in last 12mths and most unlet or have the comment we see from them all "we've had lots of interest"
Of course a portfolio of this size needs ple ty of capex i suggest they need to get pre lets before embarking on too much more. |
UK vacancy rate looks excessive because of recent developments and the loss of the Westminster Tower sale. Should look a whole lot better 6months down the track... |
Renewed director buying would help, Seely bought many millions at c.130p last September |
They all talk themselves up on ERV but rarely realise it. UK vacancy at 15% isn't healthy heading towards RGL levels. Keeping on top of debt refi but you only ever get an aggregated position. Looks to me they are using extensions in the main and this is leading to bow wave in 2025. The disposal plan is thus mission critical to avoid those refis.
Good that NRI has grown despite vacancy creep. Got a tasty 11% at Spring Gdns
as RPIX linked.
SP decline may seem overdone but still enty of headwinds so don't see much progress just yet but this update should provide a floor with a fabulous yield. |
Very illiquid share, difficult to buy in any real size.
I'm not chasing it higher now, but there really wasn't much available sub 91p before today. |
Well, the Presentation certainly underlined the bizarre under-valuation here. Massive ERV upside and debt well under control; yet at the improving 94.5p the discount a staggering 62.6%. NAV perhaps rather irrelevant really, but the yield at 8.4% certainly is relevant, especially as the 7.95p dividend could well be set to increase in 24/25. |
Good to see that the student property/business is up for sale, would hope that goes for £100M+. |
All imho dyor I am a holder of these shares and like the company but1) am I reading this correctly that Westminster tower sale fell through2) vacancy particularly in uk is high3) finance costs are going up as expectedDividend been held is good news |
Ditto! At 92p Discount is 63.6% & Yld 8.64% (very well covered). |
Mixed bag - vacancy rate 11% (temporarily, they say, 7.6% really, which still isn't small). £263m loss is all NAV-related, with values having fallen c.12%.
Sale at Albert Embankment fell through, but they keep the deposit. Two more sales totalling £70m have "strong" interest, but it's at below the revised NAV.
No increase to divi, more debt to refinance, more sales to make - but you'd be hard pressed to say it's not all in the price down here.
LTV up to 48.5% & debt cost overall up nearly 1% & will rise. |
Encouraging results with dividend held at 5.35p and covered 1.3x. NTA 253p and NAV 233.8p. Confident statement and I suspect we may see a reasonable bounce and directors are now released from a closed period. Either way I still consider this to represent a solid opportunity/ investment at 92p |
Thanks for posting the article Strathroyal. Would have been interesting to have had a question on state of financing in Germany. |
A little top up...excited for the morrow! |
All imho dyorI am in 2 minds over CliAppears cheap but I am concerned occupancy and refinancing. |
strath - a very good find; an interesting article. Offices a very variegated market. CLI operate with prime offices in prime locations for prime tenants. Values will be hit; but IMO not too seriously.
All should be clarified on the 6th. |
Recent article on CLS Germany
hxxps://www.refire-online.com/guest-columns/interview-rolf-mensing-head-of-cls-germany/ |
CLS Holdings plc ("CLS")
Notice of Full Year Results
CLS will announce its Full Year Results for the 12 months ended 31 December 2023 on Wednesday, 6 March 2024.
The results presentation will be taking place in-person at The London Stock Exchange,10 Paternoster Square, London, EC4M 7LS at 08:30am on 6 March 2024.
Investors and analysts can also attend the meeting by joining a live webcast and conference call.
The details of the meeting, webcast and conference call will be included in the results statement. |
DLN updated today fwiw and sound relatively positive - all be it they are highly geographically focussed, London, West End in particular. |
Just taken the tiniest toehold's worth at 89.44p. Didn't think I'd buy in here but the amount of bad news built in to the price LOOKS too much to me now. Hopefully the dividend will be held and equally hopefully the NAV doesn't decrease by TOO much at the finals announcement. Fingers all crossed |
Well, hopefully they will hold the 5.35p final. |
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