Business
Sale of Interest in London Bridge Tower
Sale of Interest in London Bridge Tower.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \nFor immediate release: Thursday 10th January 2008\n\n CLS HOLDINGS PLC \n\n (\"CLS\" or the \"Group\") \n\n ANNOUNCES SALE OF ITS INTEREST IN THE LONDON BRIDGE QUARTER PROJECT \n\nThe Board of CLS Holdings plc is pleased to announce that it has sold its\nentire interest in the London Bridge Quarter project (\"the LBQ project\")\ncomprising its shares in the companies owning the Shard of Glass and New London\nBridge House.\n\nThe interest in the two properties, situated adjacent to London Bridge Station,\nwas sold to Zijaj Limited at a price of £30 million which has been settled in\ncash.\n\nThe interim financial accounts of CLS at 30 June 2007 included the Group's\nshare of one third of the gross value of these assets, which was £131 million,\nbased on an independent professional valuation. After taking account of\nassociated loans and other assets and liabilities, the net asset value amounted\nto approximately £59 million at that date. Project and finance costs in the\nsecond half of the year further reduced this net asset value to approximately £\n51 million.\n\nThis sale has been achieved despite the significant adverse change in the\ncommercial property and lending environment since June.\n\nAs a result of the disposal of our interest, we estimate that the impact after\ncosts on the CLS Group, since June 2007, will be a loss of approximately £25\nmillion, representing a reduction of approximately 37 pence on the last\nreported Adjusted Net Asset Value per share at 30 June 2007 which was 869\npence.\n\nFollowing this sale we will concentrate on our core business. We intend to hold\nthe cash proceeds for the short to medium term.\n\nExecutive Chairman of CLS Holdings plc, Sten Mortstedt, commented:\n\n\"Much has been accomplished in bringing the London Bridge Quarter project to\nits current position. We now look forward to the Shard being built and lighting\nup the skyline of London and we wish the new consortium every success in taking\nthis project to fruition. \"\n\n -ends- \n\nFor further information, please contact:\n\nSten Mortstedt, Executive Chairman\n\nPer Sjöberg, Chief Executive Officer\n\nCLS Holdings plc\n\nTel. +44 (0) 20 7582 7766\n\nwww.clsholdings.com\n\nAdam Reynolds\n\nHansard Group\n\nTel. +44 (0)20 7245 1100\n\nwww.hansardgroup.co.uk\n\n\n \n ","length":2528,"tagName":"div"}]