CLS Holding's share price during may 2006 has been somwhat dissapointing- a decrease of 3.8% (2nd May open @ 562.5p, 31st May close @ 541p. source: LSE).
Although equities in general took a battering towards the end of the months (with investors fretting about thier holdings in emerging markets), there is god news for CLS. International property consultants CB Richard Ellis published thier monthly UK property market report showing an annualised 27.3% capital growth, and 11.3% rental growth for central London offices (up from 23% and 8.2% in April). Considering nearly all of CLS's UK portfolio lies in central London offices, this is encouraging news.
As you can see from the graph above (source: Yahoo Finance), the long term performance of CLS's share price is strong.
In France (where the second largest proprtion of CLS's portfolio lies), there has been a declining of vacancy reates from 6.5% to 5.8% , and prime rental values in Paris CBD showing signs of recovery (source: Colliers International). In the other major market where CLS operates, Sweden, the economic outlook for the next 18 months is good with GDP expected to continue to grow. However, Stockholm offcie vacancy rates still stand at well above 12% (Colliers International.
