CLS Holdings Plc (LON:CLS) today announced that it has exchanged contracts to sell the Group’s 58.02% interest in First Camp Sverige Holding AB (First Camp) to Nordic Camping & Resort Bidco AB, indirectly majority owned by a fund advised by Norvestor Equity AS, for £28.7 million, to be satisfied by £21.0 million in cash and a £7.7 million vendor loan.
The Transaction is in line with CLS’s strategy to focus on its core business of office properties in the UK, Germany and France and the proceeds will be re-invested in higher yielding commercial property opportunities. The Transaction is subject to receiving clearance from the Swedish Competition Authority, which is expected before the date of completion on 1 February 2019.
The disposal of First Camp, together with the Cood Transaction detailed below, is expected to result in a reduction in CLS’s net assets of £9.9 million, equating to a marginal fall in EPRA NAV of circa 2 pence per share, the majority of which will be accounted for at 31 December 2018. Nevertheless, the Group expects to deliver EPRA NAV at 31 December 2018 at the higher end of market expectations. The Group’s 2018 full year results will be announced on 7 March 2019.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
“I am delighted that we have been able to turn around First Camp into a profitable business prior to sale. First Camp is an owner and operator of vacation sites in Sweden, and its disposal is in line with the Group’s strategy of focusing on our core business of long-term ownership of office properties in the UK, Germany and France.”