CLS Holdings Wins Planning Approval for 529-Home Citadel Place Development in Vauxhall

Lambeth Borough Council's Planning Committee resolved on Sept. 22, 2026, to grant planning permission for Citadel Place, a residential-led mixed-use development in Vauxhall that would deliver 529 new homes, flexible commercial space and a new public square. The approval advances a conditional sale of the site by CLS Holdings plc to London Square that was announced earlier in 2026.

Planning Resolution Advances Conditional Sale

The committee's resolution represents the first step required for the sale between CLS Holdings plc and London Square to become unconditional. The two parties are continuing to work through the remaining conditions, which are expected to be resolved in the first half of 2027.

Of the 529 homes approved for the Citadel Place site, also known as Spring Gardens, 156 — or 35% of the total — will be delivered as affordable housing under a social rent tenure. The scheme also includes flexible commercial space and a new public square intended to improve the surrounding public realm in the Vauxhall submarket of the London Borough of Lambeth.

Fredrik Widlund, CEO of CLS Holdings plc, said the outcome demonstrated the development potential within the company's existing portfolio. "This is fantastic news for the regeneration of Vauxhall and, yet again, shows that we have an incredible amount of potential in our existing portfolio where we can create long-term value and enhance the public realm," Widlund said.

CLS Holdings' Portfolio Strategy and Financial Context

The Citadel Place transaction reflects a broader CLS Holdings plc strategy of extracting development value from commercial assets rather than relying solely on leasing and holding office properties. The company sold approximately £57 million of assets at book value during the first half of 2026 as part of ongoing portfolio management.

CLS Holdings plc reported an EPRA vacancy rate of 14.5% across its portfolio as of June 30, 2026, with vacancy in its UK portfolio reaching 17.7%, up from 17.4% at year-end 2025. The UK portfolio recorded a valuation decline of £49.0 million, or 7.2%, in the first half of the year. Net rental income for the period was £46.3 million, compared with £53.3 million in the first half of 2025, while like-for-like net rental income fell 4.7% to £50.8 million. EPRA earnings per share came in at 2.7 pence, down approximately 32.5% year over year. The company's cost of debt stood at 3.9%, and rent collection remained at approximately 98%.

Contracted rent across the CLS Holdings plc portfolio stood at £100.4 million at June 30, 2026, against an estimated rental value of £109.9 million. Vacancy represented £15.9 million of potential rent, with roughly 30% of that concentrated in three buildings.

The conditional sale structure allows CLS Holdings plc to progress planning before the transaction becomes unconditional, reducing uncertainty around London Square's future redevelopment rights while transferring planning and development execution to the buyer.

Vauxhall Market Conditions Support Mixed-Use Approach

The Vauxhall and Battersea submarket faces a more challenging leasing environment than London's established core office districts. The Vauxhall/Battersea vacancy rate stood at 18.0% in the first quarter of 2026, with a new-and-refurbished vacancy rate of 17.1% and prime rents of approximately £60 per square foot. That backdrop supports a residential-led strategy at Citadel Place, where London's persistent housing demand and planning pressure create a clearer path to value than a purely commercial redevelopment.

The inclusion of 156 social rent affordable homes directly within the scheme addresses planning obligations while contributing to the wider regeneration of the Vauxhall corridor. The flexible commercial component and public square preserve an employment and community services dimension rather than creating an entirely residential project.

Citadel Place sits within the broader Vauxhall–Nine Elms–Battersea regeneration corridor. The project's progress will depend on the resolution of remaining planning conditions, the final legal completion of the conditional sale and construction economics as London Square moves toward delivery.

Next Steps

CLS Holdings plc said it continues to work closely with London Square on the remaining conditions attached to the planning resolution. Those conditions are expected to be cleared in the first half of 2027, at which point the conditional sale would become unconditional and London Square would assume responsibility for delivering the 529-home scheme.