Almacantar

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

 

 

The main consolidated income figures for the Almacantar Group for the six months ended June 30, 2013 are as follows:

  Half I
 
£ million 2013 2012 Change
Net property income
8.6 5.7 2.9
Operating profit
6.3 3.8 2.5
Profit after tax
3.0 1.0 2.0
Profit attributable to owners of the parent
2.6 0.6 2.0

Almacantar reported a profit of £3 million for the six month period ended June 30, 2013. This includes net property income of £8.6 million, finance expenses of £4.1 million, one-off receipt from a tenant on a lease surrender of about £0.4 million and an unrealized gain on valuation of interest-rate hedging swaps of £0.9 million.

A significant proportion of income arises under leases with fixed rental levels. Leases typically have a remaining period of several years. However, as described below, 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 an increase in the value of the properties is realized after completion of the building work.

The group’s finance expense for the period ended June 30, 2013 of £4.1 million largely comprises interest expense on bank borrowings that are secured on the properties. A substantial level (87%) of bank interest expense is fixed under interest-rate “swap” agreements.

Key consolidated statement of financial position data of the Almacantar Group at June 30, 2013 are as follows:

£ million 06/30/2013 12/31/2012 Change
Investment properties
433.5 396.2 37.3
Net assets
324.2 321.2 3.0
       
 - Bank debt
(147.1) (147.4) 0.3
 - Other debt
(6.7) (6.0) (0.7)
 - Cash 29.6 31.5 (1.9)
Net financial position
(124.2) (121.9) (2.3)

At June 30, 2013, the share capital of Almacantar amounted to £276 million. In early July 2013, Almacantar issued additional share capital at a nominal amount of £109.9 million plus a premium of £5.5 million. Following payments by shareholders in early July, the amount of share capital not yet called for payment is £82.5 million.

At the same date, Almacantar held 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.

A building permit to convert Centre Point into luxury apartments was approved in early July 2013. Building work is expected to commence in 2014.


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.

An application for a building permit for this development work is scheduled to be submitted before the end of 2013.

 

CAA House

This property is also in the center of London, and is leased by a British government agency until 2019.

 

125 Shaftesbury Avenue

In early July 2013, Almacantar has entered into a contract to purchase an additional investment property at 125 Shaftesbury Avenue, a building in the center of London. This is leased by a variety of commercial tenants and will provide Almacantar with an additional redevelopment opportunity in the future.

Almacantar will continue its strategy of increasing the value of existing investments, in particular by redeveloping Centre Point following the approval of a building permit, and by finalizing the design of a scheme to improve Marble Arch Tower. Almacantar will continue to generate net income from CAA House. In addition, Almacantar is active in the market for acquisition of additional investment properties in central London such as 125 Shaftesbury Avenue, 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