CLS Holdings sells Vauxhall Square development site
CLS Holdings has exchanged contracts for the unconditional sale of the site of its proposed mixed-used Vauxhall Square development to Chinese property developer R&F Properties for a gross consideration of £157.77m, with the proceeds set to be reinvested in its core business.
CLS Holdings
83.00p
13:05 19/04/24
FTSE 250
19,323.96
13:40 19/04/24
FTSE 350
4,312.11
13:40 19/04/24
FTSE All-Share
4,268.30
13:40 19/04/24
Real Estate Investment & Services
2,123.81
13:39 19/04/24
R&F will assume CLS's obligations for the relocation of the hostel at 62 Bondway, resulting in a net consideration of £144.1m, paid in cash at completion, which is expected on or around 4 May.
The company will retain the freehold interest in the Miles Street student accommodation block and residential houses in Wandsworth Road.
At 31 December 2016, Vauxhall Square was valued at £100m and in 2016 generated net rent of £1.9m.
CLS will make a profit on disposal of about £40m after costs, which will add some 70p to pro forma EPRA NAV.
Chairman Henry Klotz said the sale was 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 £330m of long-term investments.
At 1415 BST, the shares were up 6% to 1,857p.