CLS offloads two non-core assets for £11m

10th Jun 2024 07:32

(Sharecast News) - Commercial property investment group CLS Holdings has offloaded two properties for a combined £10.7m, shedding non-core assets that were initiallly acquired as part of a larger portfolio purchase.

The Aqueous II, Aston Cross Business Park in Birmingham and the Hansastrasse office building in Dortmund were both sold or unconditionally exchanged on within the past two weeks.

However, the sale prices achieved came at an average discount of 5.0% below 31 December 2023 valuations.

"Both properties recently sold were part of previous portfolio acquisitions and no longer align with our long-term strategic objectives," said chief executive Fredrik Widlund.

Meanwhile, CLS said that the sales process for the Spring Mews student property in Vauxhall, which the company has owned for 10 years and was put up for sale in March, is said to have generated "significant interest". CLS said it has received first stage bids from several parties that the company is currently assessing.

"We remain focused on having the highest quality, sustainable, modern offices in our locations," Widlund said. "We have significant opportunities in our portfolio and the disposals are in line with our previously announced strategy to reduce leverage in preparation for growth."