Chelsfield caught by internet snag

12 April 2012

HIGHER-than-expected losses at its internet hotel venture Global Switch left property group Chelsfield struggling to remain in the black in the first half of the year.

Chelsfield has been unlucky with its tenants. In February, its largest tenant, Global Crossing, declared itself bankrupt followed three months later by its second-biggest tenant, KPNQwest. Together, they paid £8m in annual rent.

KPNQwest owed Chelsfield substantial amounts and the group has written off £21m from its first-half results. Operating profits for the six months to 30 June were down £1m at £18.9m, but after exceptionals they stood at just £300,000.

Talks on restructuring or selling Global Switch are continuing with banks and interested third parties, and a deal is expected before the end of the year. The dividend is held at 2p.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in