CLS Holdings PLC Sale of Vauxhall Square (6804B)
05 April 2017 - 9:14PM
UK Regulatory
TIDMCLI
RNS Number : 6804B
CLS Holdings PLC
05 April 2017
CLS Holdings plc
("CLS", the "Company")
Sale of Vauxhall Square, London SW8
CLS Holdings plc announces that it has exchanged contracts for
the unconditional sale of the site of its proposed mixed-use
Vauxhall Square development ("Vauxhall Square") to R&F
Properties, a large Chinese property developer listed on the Hong
Kong Stock Exchange, for a gross consideration of GBP157.77
million.
R&F Properties will assume CLS's obligations for the
relocation of the hostel at 62 Bondway, resulting in a net
consideration of GBP144.1 million, which will be received in cash
at completion. It is expected that completion will be on or around
4 May 2017. The Company will retain the freehold interest in the
Miles Street student accommodation block (having sold a long
leasehold interest for GBP24.8 million in December 2015) and
residential houses in Wandsworth Road.
At 31 December 2016, Vauxhall Square was valued at GBP100
million and in 2016 generated net rent of GBP1.9 million. The rent
has since reduced to GBP0.1 million p.a. following the expiry of a
lease with Cap Gemini.
CLS will make a profit on disposal of approximately GBP40
million after costs, which will add some 70 pence to pro forma EPRA
NAV. There is no debt secured against the site and it is
anticipated that the full sale proceeds will be re-invested in the
Company's core business.
Henry Klotz, Executive Chairman of CLS, commented:
"The sale of Vauxhall Square is a milestone in the history of
CLS. Having bought the site nearly 30 years ago and secured
planning in 2013, we are pleased now to have exchanged contracts at
a price above its year end valuation.
"R&F Properties has extensive residential development
experience and we are delighted that it will soon create a vibrant
residential, office and retail development to enhance Vauxhall, an
area in which we retain over GBP330 million of long-term
investments.
"We intend to reinvest the proceeds in our core business: high
yielding offices with good asset management opportunities within
key European cities".
For further information, please contact:
CLS Holdings plc
www.clsholdings.com
+44 (0)20 7582 7766
Sten Mortstedt, Executive Director & Founding
Shareholder
Henry Klotz, Executive Chairman
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
Liberum Capital Limited
+44 (0)20 3100 2222
Richard Crawley
Jamie Richards
Panmure Gordon (UK) Limited
+44 (0)20 7886 2500
Dominic Morley
Andrew Potts
Elm Square Advisers Limited
+44 (0)20 7823 3695
Jonathan Gray
Smithfield Consultants (Financial PR)
+44 (0)20 7360 4900
Alex Simmons
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of CLS is David Fuller, Company Secretary.
.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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