Almacantar

(36.29% of share capital through EXOR S.A.)





The main consolidated income figures for the Almacantar Group in 2012 are as follows:

Almacantar reported a profit of £33.7 million for the year ended December 31, 2012. This includes an unrealized gain from the positive fair value alignment of its three investment properties of £34.0 million.

Almacantar’s profit for 2012 after adjusting for various non-recurring items, primarily the unrealized gain arising from the year-end revaluation of the group’s investment properties, is £3.6 million.

A significant proportion of income arises under leases with fixed rental levels. Most leases have a remaining period of several years. However, it is expected that rebuilding of the Centre Point and Marble Arch Tower properties will begin in 2014 and 2015 respectively. At that time, annual income from those properties is likely to decline, before the increase in the value of the properties is realized after completion of the building work.

The group’s finance expense of £6.9 million in 2012 largely comprises interest expense on bank borrowings which are secured on the properties. A substantial level (87%) of bank interest expense is fixed under interest-rate swap agreements.

Key consolidated balance sheet figures for the Almacantar Group at December 31, 2012 are as follows:

A large part of the cash was utilized in July 2012 to acquire CAA House. At that time, additional bank debt of £60 million was incurred, and cash of £38 million was paid out.

At December 31, 2012, the share capital of Almacantar amounted to £276 million, of which £86 million was not yet called for payment by the shareholders.

At the same date Almacantar holds the following properties:

Centre Point

Centre Point is a well-known building of 34 stories in central London close to the districts of Soho, Bloomsbury and Covent Garden. It was built in the 1960s and has legal protection as a building of special architectural interest.

Almacantar applied for a building permit to convert the Centre Point tower into exclusive apartments of a very high standard. In September 2012, the application was refused largely because of delay in obtaining authorization from the relevant government authorities. A revised application is being prepared. It is anticipated that the building work will commence in 2014. At that time, the building will temporarily cease to generate income, and additional bank borrowings will be obtained, for a period of between two and three years. 

Marble Arch Tower

Marble Arch Tower is situated on a prominent site in central London overlooking Hyde Park.

The building currently comprises offices, other commercial occupiers, and a cinema. Almacantar is working with an architect to design a mixed-use building, including high quality residential apartments. Construction work is expected to commence in 2015.

CAA House

In July 2012 Almacantar completed the purchase of CAA House. This property is also in the center of London, and is leased by a British government agency.

Almacantar will continue its strategy of increasing the value of existing investments, in particular by applying for permission to undertake construction work. In addition, a limited number of new property investments in central London will be sought, which have the potential for Almacantar to use its real estate skills to transform and add long-term value.