CLS Holdings disposes of Hamburg asset
Property investment company CLS Holdings agreed to dispose of Albert-Einstein-Ring 17-21 in Hamburg on Friday.
CLS Holdings
82.60p
16:44 19/04/24
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
Real Estate Investment & Services
2,135.62
17:09 19/04/24
CLS will sell the 13,419 square foot property, acquired by the group in 2017, for a total of €36.45m excluding costs.
Although the FTSE 250-listed firm said the property offered "long-term potential", given that the area's public transport network was set to improve over the coming decade, CLS also stated the property was currently experiencing "higher levels of vacancy" and no longer met its portfolio criteria.
The sale price was 38% above the site's last valuation - reflecting a net initial yield of 3.6%.
Chief executive Fredrik Widlund said: "Whilst Hamburg remains one of our key markets, this disposal captures value for our investors today and releases capital that can be recycled earlier into opportunities with a better income profile.
"We continue to see exciting opportunities in our key markets and strongly believe in the resilience and attraction of well-located, affordable offices in non-prime locations."
As of 0845 BST, CLS shares were down 0.97% at 191.53p.