Safestay agrees £5.1m sale of Glasgow Charing Cross hostel

(Sharecast News) - Safestay said on Monday that it had exchanged conditional contracts to sell its Safestay Glasgow Charing Cross freehold property and hostel to an independent third-party investor for £5.1m in cash.

The AIM-traded hostel operator said the transaction was conditional on approval from its lender, with completion expected by 28 August.

Once completed, Safestay would no longer operate the hostel and the site would cease trading under the Safestay brand.

Net proceeds would be used to repay debt, support working capital and strengthen the group's balance sheet as it pursues its longer-term growth strategy.

The sale followed Safestay's announcement in June last year that it was considering conditional disposals of certain UK assets.

Since then, the company had sold and franchised its Edinburgh freehold hostel for £5.4m and sold and leased back its Brighton freehold property for £3.1m.

Safestay Glasgow Charing Cross generated audited revenue of about £1.5m and profit before tax of about £0.4m in the year to 31 December 2025.

The book value of the fixed assets associated with the property was about £5.2m as at 29 May 2026.

Safestay bought the property in October 2019 for £3.2m and subsequently invested about £0.4m in preparing and refurbishing the site.

The company said the disposal therefore represented a return of about £1.5m on its investment, while resulting in a modest loss of about £0.1m against the latest book value.

"The sale of our freehold property and hostel, Safestay Glasgow Charing Cross, for £5.1 million is fully aligned with our strategy to crystallise value for shareholders while supporting sustainable long-term growth," said chairman Larry Lipman.

"Alongside the recent successful sales of two freehold sites in Edinburgh and Brighton, this transaction will further strengthen the group's balance sheet and provide additional flexibility as we continue to deliver our plans to selectively grow the portfolio and create shareholder value."

At 0923 BST, shares in Safestay were down 1.92% at 12.75p.

Reporting by Josh White for Sharecast.com.

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