1st Jul 2025 10:52
(Alliance News) - CLS Holdings PLC on Tuesday reported the disposal of two properties in Germany, with the proceeds earmarked for debt repayment.
The London-based commercial property investment company said it completed the sale of Munich-based Techno Centre in Grafelfing Business Park, an 8,527 square metre, mixed-use office and industrial building.
CLS also noted the unconditional exchange for the sale of Hamburg-based Jarrrestrasse 8-10, a fully let 5,377 sqm office building. Completion for this transaction is expected in August.
Both properties no longer aligned with CLS's "forward looking strategy", it said, owing to their "limited asset management opportunities," with CLS noting that they were sold at a discount of around 10% below the valuations at December 31, and at an average net yield of 6.4%.
CLS said the sales totalled EUR41.3 million, will the proceeds earmarked for debt repayment. It added that its pro-forma loan to value ratio will drop to 47.0% at year-end from 50.7%, following the recent completion of the Spring Mews Student sale.
This ratio compares debt to the fair value of the company's property portfolio.
Back in March, CLS reported the sale of the student accommodation site in London for GBP101.1 million to real estate investment firm Rosethorn Capital Partners and asset manager Barings.
Shares in CLS were 1.0% higher at 70.78 pence on Tuesday morning in London.
Chief Executive Fredrik Widlund said: "We remain focused on reducing our LTV and prioritising assets where we can generate long-term upside through active asset management. These transactions demonstrate tangible progress ahead of the disposal targets we outlined in our full-year results. With occupier demand strengthening and significant opportunities within our existing portfolio, we are well positioned to capitalise on a recovering market."
By Christopher Ward, Alliance News reporter
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