CLS to sell "very successful" student development for GBP101 million

(Alliance News) - CLS Holdings PLC on Thursday announced the sale of a student accommodation site ...

Alliance News 27 March, 2025 | 10:55AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - CLS Holdings PLC on Thursday announced the sale of a student accommodation site in London for GBP101.1 million.

CLS has unconditionally exchanged on the sale of Spring Mews Student in Vauxhall, London to real estate investment firm Rosethorn Capital Partners and asset manager Barings.

The commercial property investment company said the net cash consideration is in-line with the December 31 valuation, and 8.1% ahead of its value at the end of 2023.

"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," CLS added.

"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."

On the Spring Mews sale completion, disposal proceeds will go towards repaying GBP85.8 million of debt for the Holborn and Aldgate 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," CLS added.

"The sale of Spring Mews Student will therefore be marginally earnings enhancing."

Chief Executive Fredrik Widlund said Spring Mews has been a "very successful development for CLS".

"The sale demonstrates CLS's 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 [loan-to-value]," Widlund added.

CLS shares rose 3.3% to 72.81 pence each in London on Thursday morning.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
CLS Holdings PLC 61.23 GBX -2.35 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2025 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures