LONDON: CLS Holdings Plc announced that it has unconditionally exchanged on the sale of its student accommodation asset, Spring Mews Student, located in Vauxhall, London, to Rosethorn Capital Partners and Barings for £101.1 million in net cash consideration. The transaction, which aligns with the December 31, 2024, valuation, represents an 8.1% increase from the 2023 year-end valuation. The sale is set to conclude in May 2025 upon the remaining consideration being paid.
Spring Mews Student, constructed by CLS in 2014 as part of the mixed-use Spring Mews development, has been a consistently high-performing asset. Comprising student, hotel, and office properties, it has achieved full occupancy throughout its operation, apart from disruptions caused by the COVID-19 pandemic. Following a minor refurbishment in 2024, the property recorded its highest-ever profits.
Proceeds from the sale will address upcoming loan maturities for New Printing House Square in Holborn and Artesian in Aldgate, originally due in June and December 2025. CLS will substitute these properties into an existing portfolio loan with Aviva Investors, allowing the company to repay £85.8 million of debt. This restructuring also enables CLS to maintain the Aviva Investors portfolio loan, which is fixed at 2.54% and matures in 2030 and 2032. The company expects the sale to slightly enhance earnings, reduce its cost of debt by over 20 basis points, and lower its loan-to-value (LTV) ratio 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 realize value through its structured, proactive approach, while simultaneously addressing upcoming loan maturities and reducing LTV.”
The sale marks a pivotal step in CLS’ strategic efforts to optimize its financial structure and asset portfolio.