Last checked at 19 Feb 2016 07:00
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."
-ends-
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
| +44 (0)20 7582 7766 |
Liberum Capital Limited Tom Fyson
| +44 (0)20 3100 2222 |
Panmure Gordon (UK) Limited Mark Taylor Russell Cook
| +44 (0)20 7886 2500
|
Kinmont Limited Jonathan Gray
| +44 (0)20 7087 9100 |
Smithfield Consultants (Financial PR) Alex Simmons | +44 (0)20 7360 4900 |