(Alliance News) - CLS Holdings PLC on Monday said that it has signed agreements with Edgar Suites Groupe SAS and Nexity SA to convert its Paris-based office property, Debussy, into serviced apartments.
According to the London-based commercial property investment company, it will invest around EUR12 million over a two-year period, in order to convert the existing building into 57 serviced apartments.
These will be operated by Edgar Suites, an aparthotels operator, on a 12-year lease, with a base rent and a turnover element. Meanwhile, Nexity, a French developer, has been chosen to carry out construction works, which will start in early 2025 and complete at the end of 2026.
"We always look to optimise the use and value of our properties and the conversion to serviced apartments offers an opportunity to generate attractive returns by converting an older office building in a growing and dynamic part of Paris," said Chief Executive Officer Fredrik Widlund.
"We are delighted to have signed these agreements that will both diversify our French portfolio and give us exposure to a growing and exciting sector of the market. We believe there will be further opportunities such as this where we can create value through innovative development and reuse, maximizing the efficiency of our portfolio for the years ahead."
Shares in CLS Holdings were down 0.2% at 86.00 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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CLS Holdings (CLI)