16th Oct 2018 09:01
LONDON (Alliance News) - Property investor CLS Holdings PLC said Tuesday it has sold Buspace Studios in London for GBP13.5 million to Warrior Property Group.
Buspace comprises 32,537 square feet of office space. The sale price was higher than Buspace's GBP13.0 million valuation on June 30, unchanged since the end of 2017.
Buspace had a net initial yield of 4.5% and Warrior has the potential to apply for a change of use for the property.
CLS said that it sold Buspace on the basis of its small lot size, limited scope to add value, and low yield.
"Buspace Studios has served as an incubator for businesses with small space needs, allowing them to grow into potential tenants for other CLS properties within London," said CLS Chief Executive Fredrik Widlund.
"We look forward to investing the proceeds of the sale into higher yielding properties which have the scope for us to maximise value through active asset management," Widlund added.
Shares in CLS Holdings were up 1.2% at 209.50 pence on Tuesday.
Related Shares:
CLS Holdings