CLS sells two Central London properties for EUR 72m

real estate investment firm CLS Holdings has sold two properties in Central London to Aziz Family Trust Companies, represented by Criterion Capital, for £57mln (EUR 72mln).

The first property is a nine-storey leisure and retail building at One Leicester Square. Comprising 3,523 m2, the premises generates an annual income of £1.7mln. The transaction price was £33.7mln, reflecting a net initial yield of 4.8%.

The second property, Coventry House, Haymarket, overlooks Piccadilly Circus and comprises 18 apartments above a restaurant. CLS Holdings said 14 of the apartments have been sold on long leases. In addition, an electronic screen at roof level is let on a revenue sharing basis to Clear Channel. The property, which generates income of £1.5mln per annum, was sold for £23.5mln, representing a net initial yield of 5.9%.

CLS Holdings said the sales represent a premium of £4.4mln or 8.4% ahead of the valuations in December 2007. Kingly Partners and Colliers acted on behalf of CLS in the sale of One Leicester Square.

CLS Holdings executive chairman Sten Mortstedt commented: 'We are pleased to have achieved sales of these two Central London properties. Our core investments remain principally in offices and having carried out extensive works and re-lettings at both properties, we felt it was timely to sell.'

London-based CLS Holdings has been listed on the London Stock Exchange since 1994 and has a property portfolio in London, France, Sweden and Germany which was valued at £1,2bn at end-December 2007.