(Alliance News) - CLS Holdings PLC on Wednesday said it agreed to sell Quayside Lodge in London to SMC Fulham Ltd for GBP19 million.
The mid-cap commercial property investment firm said the disposal price represents a 14% premium to the site's valuation as at December 31, 2018.
The decision to sell the Fulham property was driven by its higher alternative use value and limited scope for CLS to add further value, the company explained.
Quayside Lodge was acquired by CLS in 2004 and currently provides 32,000 square feet of office space over three floors. CLS said it has secured detailed planning permission last year for a new, high-quality 160,000 square feet expansion.
"This sale demonstrates that there is good demand for residential development sites in Central London locations that are designed to a high standard and have the benefit of full planning permission," said Head of Group Property Simon Wigzell.
"Our in-house development team have proven our ability to secure long-term, value-add development opportunities from within our portfolio," added Wigzell.
CLS shares were trading 2.8% higher on Wednesday in London at 219.50 pence each.
CLS Holdings (CLI)