Last checked at 10 Jan 2008 14:56
For immediate release: Thursday 10th January 2008
CLS HOLDINGS PLC ("CLS" or the "Group") ANNOUNCES SALE OF ITS INTEREST IN THE LONDON BRIDGE QUARTER PROJECT
The Board of CLS Holdings plc is pleased to announce that it has sold its entire interest in the London Bridge Quarter project ("the LBQ project") comprising its shares in the companies owning the Shard of Glass and New London Bridge House.
The interest in the two properties, situated adjacent to London Bridge Station, was sold to Zijaj Limited at a price of ‚£30 million which has been settled in cash.
The interim financial accounts of CLS at 30 June 2007 included the Group's share of one third of the gross value of these assets, which was ‚£131 million, based on an independent professional valuation. After taking account of associated loans and other assets and liabilities, the net asset value amounted to approximately ‚£59 million at that date. Project and finance costs in the second half of the year further reduced this net asset value to approximately ‚£ 51 million.
This sale has been achieved despite the significant adverse change in the commercial property and lending environment since June.
As a result of the disposal of our interest, we estimate that the impact after costs on the CLS Group, since June 2007, will be a loss of approximately ‚£25 million, representing a reduction of approximately 37 pence on the last reported Adjusted Net Asset Value per share at 30 June 2007 which was 869 pence.
Following this sale we will concentrate on our core business. We intend to hold the cash proceeds for the short to medium term.
Executive Chairman of CLS Holdings plc, Sten Mortstedt, commented:
"Much has been accomplished in bringing the London Bridge Quarter project to its current position. We now look forward to the Shard being built and lighting up the skyline of London and we wish the new consortium every success in taking this project to fruition. "
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For further information, please contact:
Sten Mortstedt, Executive Chairman
Per SjĦberg, Chief Executive Officer
CLS Holdings plcTel. +44 (0) 20 7582 7766www.clsholdings.comAdam ReynoldsHansard GroupTel. +44 (0)20 7245 1100www.hansardgroup.co.uk
CLS HOLDINGS PLC