CLI Cls Holdings Plc

RNS Number:8368Q
CLS Holdings PLC
31 January 2002


Release date:        31st January 2002

For Immediate Release



                         CLS HOLDINGS PLC ANNOUNCES
                      TWO NEW ACQUISITIONS IN SWEDEN


The board of CLS Holdings plc ("CLS") is pleased to announce that CLS has made
two further acquisitions in Sweden, at a total price of SEK 495 million (£33.0
million) inclusive of all costs.

The main acquisition comprises mixed residential and commercial properties at
Lovgardet, Gothenburg, constructed in 1971-1975.  The residential element
consists of 1,282 apartments, with a total area of 79,614 sq m (855,532 sq ft),
producing a gross rental income before all property related costs of SEK
53,444,000 (£3,563,000) p.a. (SEK 671 per sq m / £4.2 per sq ft). The
residential apartments are fully let.

The commercial properties (including a school) comprise 33,494 sq m (359,926 sq
ft), which are fully let, mainly to Gothenburg council, on leases maturing in
2012-2014. These generate a gross rental income of SEK 29,336,000 (£1,956,000)
p.a. (SEK 876 per sq m / £5.4 per sq ft).

Gothenburg is the second largest city in Sweden, with a strong and expanding
economy. Within Gothenburg the demand is accordingly strong for residential
accommodation, thus ensuring a long term secure income.

The other acquisition is a fully let mixed office and light industrial property
comprising 4,862 sq m (52,247 sq ft) immediately adjoining Solna Business Park
in Stockholm. The gross rental income totals SEK 5,100,000 (£340,000) p.a. (SEK
1,050 per sq m / £6.50 per sq ft).

Executive Chairman, Sten Mortstedt, said:

"I am very pleased with the Gothenburg acquisition. This continues our policy of
purchasing good quality properties with secure long term income. The properties
have been financed with long term funding facilities, at an average interest
rate (fully hedged) of 6%, generating a very attractive return on equity.

In addition I am pleased that we have managed to add to our property portfolio
at Solna Business Park."


                                     -ends-

For further information, please contact:

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

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



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