22nd Jul 2019 08:40
(Alliance News) - CLS Holdings PLC said Monday it agreed to sell two German office buildings for a combined EUR57.2 million, as it looks to reinvest the proceeds in higher yielding assets.
The real estate firm sold the 17,124 square metre East Gate property in Munich for EUR45.3 million, representing a 16% premium to its valuation at the end of 2018. CLS also sold Schanzenstrasse in Dusseldorf for EUR11.9 million, a price that is 76% above its valuation at the end of 2018.
The sales are expected to close before the end of September.
CLS made the decision to sell the properties due to their low net initial yield and "limited" scope for adding further value by the firm.
"I am delighted that we have concluded these two new sales which realise significant value from our active asset management strategy," CLS Chief Executive Officer 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," Widlund added. "The sale proceeds will be reinvested in higher yielding properties where we can add long-term value."
Shares in CLS were 0.7% higher at 222.50 pence in London on Monday.
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