REG - CLS Holdings PLC - Sale of Spring Mews Student

CLS HoldingsAnnouncement

27/03/2025 07:15

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RNS Number : 3984C  CLS Holdings PLC  27 March 2025

CLS Holdings plc ("CLS", the "Company" or the "Group")

CLS announces the sale of the Student accommodation at Spring Mews ("Spring
Mews Student")

 

CLS announces that it has unconditionally exchanged on the sale of Spring Mews
Student in Vauxhall, London to Rosethorn Capital Partners and Barings for
£101.1 million net cash consideration. The purchase price is in-line with the
31 December 2024 valuation and 8.1% ahead of the 2023 year-end valuation. The
sale will be completed in May 2025 when the remaining consideration will be
paid.

 

In 2014, CLS constructed its student accommodation asset as part of the
mixed-use Spring Mews development, comprising student, hotel and, office
properties. Since the early years, Spring Mews Student has always been fully
occupied (apart from during the Covid pandemic) and in 2024, following a minor
refurbishment, it achieved record profits.

 

The sale has also provided an opportunity to address upcoming loan maturities
for New Printing House Square in Holborn and Artesian in Aldgate, which were
due in June and December 2025, with the properties being substituted for
Spring Mews Student into an existing portfolio loan with Aviva Investors.
Consequently, on completion of the Spring Mews sale, the disposal proceeds
will be used to repay £85.8 million of debt for the two properties being
substituted into the Aviva Investors portfolio. The restructuring of the
financing allows CLS to repay more expensive debt whilst retaining the Aviva
Investors portfolio loan largely intact, which is fixed at 2.54% and expires
in 2030 and 2032. The sale of Spring Mews Student will therefore be marginally
earnings enhancing. This will also reduce CLS' year-end cost of debt by over
20 basis points and LTV from 50.7% to 47.9% on a pro forma basis.

 

Fredrik Widlund, Chief Executive of CLS, commented:

 

"Spring Mews Student has been a very successful development for CLS, and we
are pleased that Rosethorn and Barings will become the owners as the scheme
enters its next phase as an integral and continuous part of our Spring Mews
estate in Vauxhall. The sale demonstrates CLS' ability to develop, operate and
realise value through its structured, pro-active approach and, at the same
time, deliver on several strategic priorities by addressing upcoming loan
maturities and reducing LTV."

 

-ends-

 

For further information, please contact:

 

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com (http://www.clsholdings.com/)

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

+44 (0)20 7582 7766

 

Panmure Liberum

Jamie Richards

David Watkins

+44 (0)20 3100 2000

 

Berenberg

Carl Gough

Harry Nicholas

+44 (0)20 3207 7800

 

Edelman Smithfield (Financial PR)

Alex Simmons +44 7970 174 353

Hastings Tarrant +44 7813 407 665

cls@edelmansmithfield.com (mailto:cls@edelmansmithfield.com)

 

 

Forward-looking statements

This document may contain certain 'forward-looking statements'. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances. Actual outcomes and results may
differ materially from those expressed or implied by such forward-looking
statements. Any forward-looking statements made by or on behalf of CLS speak
only as of the date they are made and no representation or warranty is given
in relation to them, including as to their completeness or accuracy or the
basis on which they were prepared. Except as required by its legal or
statutory obligations, the Company does not undertake to update
forward-looking statements to reflect any changes in its expectations with
regard thereto or any changes in events, conditions or circumstances on which
any such statement is based. Information contained in this document relating
to the Company or its share price, or the yield on its shares, should not be
relied upon as an indicator of future performance.

 

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