Disposal

RNS Number : 5207P

CLS Holdings PLC

19 February 2016

 

19 February 2016

CLS Holdings plc

announces the sale of

Vänerparken, Sweden for SEK 590 million

CLS Holdings plc announces that it has exchanged contracts to sell its Vänerparken property in Vänersborg, Sweden for SEK 590 million (£48.8 million) to Bengt Linden AB, a privately-owned real estate company. 

The 38,909 sq m (418,813 sq ft) mixed-use property comprises offices and education, leisure and healthcare facilities on which leases comprising a significant amount of the property's income were renewed in 2015.

CLS received a non-refundable deposit of SEK 25 million (£2.1 million) on exchange of contracts, and completion is due by 1 May 2016. Excluding costs, the sale represents an uplift of SEK 59 million (£4.9 million) or 11.0% over the external valuation as at 30 June 2015.

The sale takes advantage of the very strong Swedish property market to release value built up over more than 15 years, and allows the Group to focus its resources on opportunities in the UK, Germany and France.

Sten Mortstedt, Executive Chairman of CLS Holdings plc, commented:

"I am very pleased that we have reached an agreement with Bengt Linden AB for the sale of Vänerparken. Since its purchase in 1998, the property has made a strong contribution to the cash flow of the Group and its sale reflects our strategy of long-term investment in key European property markets and opportunistic portfolio management."

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For further information, please contact:

CLS Holdings plc                                                                               www.clsholdings.com Sten Mortstedt, Executive Chairman Henry Klotz, Executive Vice Chairman Fredrik Widlund, Chief Executive Officer John Whiteley, Chief Financial Officer	[phone]
Liberum Capital Limited Tom Fyson	[phone]
Panmure Gordon (UK) Limited                                                          Mark Taylor Russell Cook	[phone]
Kinmont Limited                                                                                Jonathan Gray	[phone]
Smithfield Consultants (Financial PR)                                               Alex Simmons	[phone]

 

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