CLI Cls Holdings Plc

RNS Number:2981L
CLS Holdings PLC
8 October 2001

Immediate release: 8th October 2001

             200 GREAT DOVER STREET LONDON SE1 - NEW ACQUISITION



The issuer advises that the following replaces the 'Acquisition of Property'
announcement released today at 13:48 under RNS Number 2840L.



An additional sentence has been added after the 5th paragraph to include the
Acquisition price.



All other details remain unchanged.  The full and corrected version is shown
below







Immediate release: 8th October 2001



             200 GREAT DOVER STREET LONDON SE1 - NEW ACQUISITION



The Board of CLS Holdings plc is pleased to announce the acquisition of this
long leasehold office property located to the South of London Bridge Station,
close to the proposed Southwark Tower Development in which it has a 33%
interest.



The new acquisition occupies a prominent site at the junction of Great Dover
Street and Borough High Street, directly opposite the entrance to Borough
Underground Station.



The property is arranged over lower ground, ground and four upper floors and
totals 3,376 m2 (36,345 sq ft) and has 24 car parking spaces.  The property
occupies a large site and we believe that potential exists to redevelop the
site with a building of up to 7,430 m2 (80,000 sq ft).



The entire property is let to Conoco Limited for 32 years from 24 June 1979
expiring in June 2011, with a rent review in June 2004.  The current rent
passing is #725,000 per annum, which equates to approximately  #214.72 per m2
(#19.95 per sq ft).



The property is held on a long lease for a term of 99 years from June 1962 on
a ground rent of #7,300 per annum exclusive.   The net income is therefore 
#717,700 per annum exclusive.



The property was purchased by way of a corporate acquisition at a price of 
#7,383,550 inclusive of costs and is being financed with a #5.9 million loan.
Consequently the return on equity is 24% per annum.



Executive Chairman, Sten Mortstedt, said:



"This acquisition marks our return to buying in the UK after 3 busy years
expanding in Europe.  The property at 200 Great Dover Street represents a well
let building in a rapidly improving area, where we are able to secure a high
initial yield with the added attraction of future development opportunity.
Decreasing interest rates have made the UK market more attractive and with
available cash resources of #80 million and excellent banking contacts we are
now actively looking for further acquisitions within Greater London".



                                    -ends-



For further information, please contact:



Sten Mortstedt, Executive Chairman, CLS Holdings plc    Tel. +44 (0)20 7582 7766
Tom Thomson, Acting Chief Executive, CLS Holdings plc   Tel. +44 (0)20 7582 7766

Adam Reynolds / Takki Sulaiman, Hansard Communications  Tel. +44 (0)20 7735 9415

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