Safestay (AIM:SSTY), one of Europe's largest hostel operators, has exchanged conditional contracts to sell its freehold and hostel, Safestay Glasgow Charing Cross, for £5.1 million, with the transaction conditional on lender approval and completion expected by 28 August.
The net proceeds will be used to repay indebtedness, for working capital and to strengthen the group's balance sheet as it pursues its long-term strategic growth ambitions.
In the 12 months to 31 December 2025, the Glasgow site generated audited revenue of approximately £1.5 million and profit before tax of approximately £0.4 million, the book value of the Group's fixed assets associated with the property was approximately £5.2 million as at 29 May.
"The sale of our freehold property and hostel, Safestay Glasgow Charing Cross, for £5.1 million is fully aligned with our strategy to crystallise value for shareholders while supporting sustainable long-term growth," said Larry Lipman, Chairman.
Safestay company bought the Glasgow site in October 2019 for £3.2 million, and it invested around £0.4 million, so the sale represents a return of approximately £1.5 million, whilst being a modest £100,000 loss against the latest book value.
It follows other recent disposals, including the Edinburgh freehold and hostel for £5.4 million and a sale and leaseback of the Brighton freehold for £3.1 million.
