CLS Holdings plc is announced that its wholly owned subsidiary Citadel Holdings plc has sold the corporate structure that owns 147, Avenue Paul Doumer in Rueil-Malmaison. The purchaser is Dynamique Bureaux, a property fund fully owned by CB Richard Ellis Investors.
The property value in the transaction was 8.5 million before the deduction of 793,000 relating to contingent capital gains tax and 544,000 in respect of stamp duty and other transactional costs. The sale was completed on 28th December 2006.
The property comprising (3,630m²) was purchased by CLS in 1999 for the equivalent of 4.4 million and was valued as at 30th June 2006 at 8 million.
At the time of the sale, the building was let to various tenants whilst 31% remained vacant. Major refurbishment works would have been necessary before re-letting could be achieved.
Executive Chairman, Sten Mortstedt, commented: "We are happy to have sold this building at an attractive price. The property has yielded excellent returns over our period of ownership. Following this sale, the vacancy rate of our French portfolio has been reduced to 1.7%."
Source: CLS Holdings plc.