CLS Holdings agrees conditional sale of Vauxhall asset to developer
CLS Holdings PLC on Monday said it has exchanged contracts on the conditional sale of Citadel Place in Vauxhall, London, to property developer London Square Developments Ltd.
The London-based commercial property investment company said the pair will collaborate to progress planning of a residential-led redevelopment of the site.
CLS said a planning application is expected to be submitted in the first quarter of next year.
The two companies have previously collaborated on Westminster Tower, with Citadel Place extending this partnership.
CLS said the agreement includes a conditional sale, subject to the achievement of specific planning-related criteria, with CLS set to retain the income from the existing lease until it expires.
The company added that its best estimate for the valuation of the site will be achieved if the deal completes, with this inclusive of the remaining income from the current lease.
It said the valuation by external valuers as at December 31 this year is estimated at around £70 million, with CLS noting the deal is expected to release equity in stages over the next two years, after debt repayment.
Shares in CLS were trading 2.2% higher at 59.40 pence on Monday morning in London.
‘We are pleased to be progressing Citadel Place in partnership with London Square, a highly regarded residential developer with whom we have worked successfully before. This agreement enables us to advance a residential-led scheme that can deliver lasting benefits to Vauxhall and its community, while retaining the income from the current lease and crystallising value for shareholders over time,’ said CLS Chief Executive Fredrik Widlund.
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