CLS to sell interest in First Camp

CLS said on Monday that it has exchanged contracts to sell its 58.02% interest in First Camp Nordic Camping, indirectly majority owned by a fund advised by Norvestor Equity AS, for £28.7m.

The consideration will be satisfied by £21m in cash and a £7.7m vendor loan.

CLS said the disposal is in line with its 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 deal is subject to clearance from the Swedish Competition Authority, which is expected before the completion date of 1 February 2019.

The disposal of First Camp, together with the Cood Transaction, is expected to result in a reduction in CLS's net assets of £9.9m, equating to a marginal fall in EPRA NAV of around 2p per share, the majority of which will be accounted for at 31 December 2018.

Nevertheless, CLS expects to deliver EPRA NAV at 31 December 2018 at the higher end of market expectations.

Chief executive Fredrik Widlund said: "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."

At 0830 GMT, the shares were up 1.7% at 236p.