CLI Cls Holdings Plc

RNS Number:1482Z
CLS Holdings PLC
20 February 2001


                            CLS HOLDINGS plc ("CLS")
                          CONTINUES FRENCH ACQUISITIONS

              Grundig, 5 boulevard Marcel Pourtout, Rueil-Malmaison
          Chorus, 2203 Chemin de Saint Claude, Nova-Antipolis, Antibes

The  Board  of  CLS  is  pleased  to announce the  acquisition  of  two  further
properties in France.

The  Grundig building is located in Rueil Malmaison, a suburb to  the  west  of
Paris. The property is a freehold comprising 2,570 sq m (27,663 sq ft) of office
space and 53 car parking spaces. The property is fully let to Grundig France  at
a  rent  of  FFr  1,668,217  (#162,000) p.a. The  total  purchase  consideration
inclusive  of costs for this property was FFr 18,500,000 (#1,796,000), providing
an  initial  yield of 9.0%. The return on equity is 22.0% based on  a  completed
loan facility of FFr 14,955,000 (#1,449,000) with fixed interest for a five-year
period of 5.95% p.a

The  second  investment  is  Chorus, located  in  Nova-Antipolis,  Antibes.  The
property is a freehold comprising 4,333 sq m (46,640 sq ft) of office space  and
145  car parking spaces. The property is fully let to various tenants, with the
exception of 4 car parking spaces. The anchor tenant is an agency for the French
government  and  the  total annual rent is FFr 3,592,000 (#348,000).  The  total
purchase  price  for the property was FFr 37,000,000 (#3,592,000)  inclusive  of
costs,  representing an initial yield of 9.7%. The return  on  equity  is  23.9%
based on a completed loan facility of FFr 29,000,000 (#2,815,500), with interest
of 5.8% p.a.

Executive Chairman,  Sten Mortstedt, said:

"It is becoming increasingly difficult in today's market to find properties
meeting our investment criteria  of high  yielding, well let office buildings in
attractive office locations.  I  am therefore  very  pleased that we have
completed these two further  acquisitions, which meet our investment criteria".

For further information, please contact:

Sten Mortstedt, CLS Holdings plc                     020 7582 7766
Glyn Hirsch, CLS Holdings plc                        020 7582 7766

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