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CLS Holdings disposes of German assets

By Iain Gilbert

Date: Monday 22 Jul 2019

CLS Holdings disposes of German assets

(Sharecast News) - Property investment group CLS Holdings has agreed to sell its East Gate and Schanzenstrasse properties for a combined total of €57.2m.
CLS decided to sell off the German assets as a result of their low net initial yield and the limited scope for the firm to add further value.

The FTSE 250 company will dispose of East Gate, located in Greater Munich, for €45.3m - 16% above its December valuation - while Schanzenstrasse 76 in Düsseldorf will fetch €11.9m, 76% above its last valuation.

Completion of both sales was expected to take place before the end of September.

Chief executive Fredrik Widlund said: "Our in-house property teams have done a fantastic job repositioning and letting East Gate, and identifying the residential development opportunity at Schanzenstrasse.

"The sale proceeds will be reinvested in higher-yielding properties where we can add long-term value."

At 0820 BST, CLS shares were up 0.68% to 222.50p.

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