CLS Holdings has exchanged contracts to sell its Vänerparken property in Vänersborg, Sweden for €62.9m (SEK590m) to Bengt Linden, a privately-owned real estate company.
The 38,909m2 (418,813ft2) mixed-use property comprises offices and education, leisure and healthcare facilities on which leases comprising a significant amount of the property’s income were renewed in 2015.
CLS received a non-refundable deposit of €2.66m (SEK25m) on exchange of contracts, and completion is due by 1 May 2016. Excluding costs, the sale represents an uplift of €6.29m (SEK59m) or 11.0% over the external valuation as at 30 June 2015.
The sale takes advantage of the very strong Swedish property market to release value built up over more than 15 years, and allows the Group to focus its resources on opportunities in the UK, Germany and France.
Sten Mortstedt, executive chairman of CLS Holdings plc, commented: “I am very pleased that we have reached an agreement with Bengt Linden AB for the sale of Vänerparken. Since its purchase in 1998, the property has made a strong contribution to the cash flow of the Group and its sale reflects our strategy of long-term investment in key European property markets and opportunistic portfolio management."
