CLS to sell London PBSA asset for €118m

UK commercial property investor CLS Holdings has agreed to sell its Spring Mews student accommodation in Vauxhall, London, to Rosethorn Capital Partners and Barings for £101.1 mln (€118 mln).

This price matches the 31 December 2024 valuation and is 8.1% higher than the 2023 valuation. The sale will be finalized in May 2025. 
Built by CLS in 2014 as part of a mixed-use development, comprising student, hotel, and office properties. Spring Mews Student has historically been fully occupied, and following a recent refurbishment, achieved record profits in 2024.
The sale proceeds will enable CLS to refinance loans on two other properties, New Printing House Square and Artesian, by replacing Spring Mews Student within an existing loan portfolio with Aviva Investors. This allows CLS to repay £85.8 mln (€100.1 mln) of higher-interest debt while maintaining the favourable terms of the Aviva loan, fixed at 2.54% and maturing in 2030 and 2032.
Selling Spring Mews Student will slightly increase CLS's earnings, lower their year-end cost of debt by over 0.2%, and reduce their loan-to-value ratio from 50.7% to 47.9%.
Fredrik Widlund, CEO of CLS, commented: “The sale demonstrates CLS’ ability to develop, operate and realise value through its structured, pro-active approach and, at the same time, deliver on several strategic priorities by addressing upcoming loan maturities and reducing LTV.”