CLS agrees conditional sale of Vauxhall's Citadel Place

(Sharecast News) - CLS Holdings has announced the exchange of contracts for the conditional sale of Citadel Place in Vauxhall, London, to residential developer London Square on Monday, as the two parties moved forward with plans for a residential-led redevelopment of the site. Under the agreement, CLS and London Square would work together to progress planning, with a planning application expected to be submitted in the first quarter of 2026.

The transaction was conditional on certain planning-related criteria being met, with CLS retaining the income from the current lease until its expiry.

CLS said its best estimate was that the current valuation of the site would be achieved if the transaction completed, including the remaining lease income, with potential for further upside through an overage structure.

The site was valued by CLS's external valuers at around £70m as at 31 December.

It said the transaction was expected to release equity for CLS in stages over the next two years following the repayment of existing debt.

London Square has a significant development track record in London, including a substantial portfolio in the London Borough of Lambeth.

The two companies previously worked together on Westminster Tower.

They said they were engaging with the Lambeth Borough Council and local stakeholders as the planning process advanced, with further details to be provided in due course.

"We are pleased to be progressing Citadel Place in partnership with London Square, a highly regarded residential developer with whom we have worked successfully before," said Fredrik Widlund, chief executive of CLS Holdings.

"This agreement enables us to advance a residential-led scheme that can deliver lasting benefits to Vauxhall and its community, while retaining the income from the current lease and crystallising value for shareholders over time."

At 0836 GMT, shares in CLS Holdings were up 2.23% at 59.4p.

Reporting by Josh White for Sharecast.com.