CLS holdings selling six UK properties for £7.4m

Joseph Millis
Property company CLS Holdings yesterday said it has exchanged contracts on the sale of properties in the UK worth £7.4m.

FTSE 250-listed CLS said the sale is £1.6m above the external valuation of the properties as of 31 December 2014, but in line with the valuation of the sites on 30 June this year.

The properties include: Rivers House, Fortran Road, Cardiff; 1009 Oldham Road, Manchester; 47-51 High Street, Paisley; Gregson House, 2 Central Street, St Helens; 3 Sandringham Park, Swansea; and Nightclub and event centre, Princes Street, Ipswich.

Five of the six properties were acquired in September 2013 as part of a UK-wide portfolio of 34 properties and the decision to dispose of them was driven by their location and relative size in relation to the company’s broader strategy, CLS added.

“I am very pleased to announce the sale of these six properties at a premium to their 31 December 2014 valuations in a transaction that is another example of the company’s proactive and opportunistic management of its assets,” said CLS executive chairman Sten Mortstedt.

“Their disposal frees our in-house management team to concentrate on those UK properties which we believe can deliver more significant returns in the medium to long term,” Mortstedt added.

Meanwhile, CLS Holdings stock had its “buy” rating reaffirmed by research analysts at Panmure Gordon in a note issued to investors yesterday.

CLS shares closed down 4.74 per cent at 1,810p.