Almacantar

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

 

 

 

The consolidated income statement data of the Almacantar Group for the first half of 2012 are as follows:

£ million Half I 2012 Half I 2011 Change
Net property income 5.7 1.1 4.6
Operating income (loss) 3.8 (1.1) 4.8
Profit (loss) for the period 1.0 (1.6) 2.6
Profit (loss) attributable to owners of the parent 0.6 (1.6) 2.2

Almacantar reported a profit of £1 million in the first half of 2012. This includes net income of £5.7 million from the group’s two investment properties owned in the period. This largely comprises rental income from office and other commercial occupiers of the properties, reduced by direct costs of managing and leasing the buildings.

A significant proportion of income arises under leases with fixed rental levels. Most leases have a remaining period of several years.  However, as described below, it is expected that rebuilding of the properties Centre Point and Marble Arch Tower will begin, respectively, in 2013 and 2014. At that time annual income from those properties is likely to decline, before an increase in the value of the properties is realized after the completion of the building work.

The group’s financial expenses amount to £2.8 million in the first half of 2012 and largely comprise interest expense on bank borrowings which are secured on the properties. A substantial level of bank interest expenses (78%) is fixed under interest rate swap contracts.

Almacantar expects to report an increased level of profits for the final six months of 2012 reflecting in particular the acquisition of a third investment property in central London, CAA House, as described below.

The key consolidated balance sheet data of the Almacantar Group at June 30, 2012 are as follows:

£ million 30/06/2012 31/12/2011 Change
Investment properties 245.0 230.1 14.8
Net assets 288.5 287.4 1.1
       
Debt (88.3) (88.1) (0.2)
Cash and cash equivalents 54.2 67.5 (13.4)
Net financial position (34.1) (20.6) (13.5)

A large part of the cash was held to pay for future investments. Specifically, in the first half of July 2012, Almacantar completed the acquisition of CAA House. At that time, additional bank debt of £60 million was incurred and cash of £38 million was paid out.

At June 30, 2012 the share capital of the company amounted to £276 million, of which £111 million was not yet called for payment by the shareholders.

The company owns the following properties at June 30, 2012:

Centre Point
Centre Point is a well-known 34-story building 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 has applied for a building permit to convert the Center Point Tower to exclusive apartments of a very high standard. It is expected that this work will begin in 2013. 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 exclusive residential apartments. Construction work is expected to begin in 2014.

CAA House
In March 2012 Almacantar signed an agreement to purchase CAA House. This property is also in the center of London and is leased by a British government agency.

In the first half of July 2012 the purchase of CAA House was successfully completed. The acquisition will generate additional net income for 2012.

 

Almacantar will continue its strategy of increasing the value of existing investments in particular by applying for permission to undertake construction work to improve the assets. 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.

Commercial Register No.64236277 Legal notes | Credits