RNS Number:3485Y
CLS Holdings PLC
9 July 2002

Release date:      9 July 2002

Embargoed until: 07:00





                       CLS HOLDINGS PLC ("CLS") ANNOUNCES

                    ACQUISITIONS AND NEW LETTINGS IN FRANCE





The Board of CLS is pleased to announce that Citadel Holdings plc, its wholly
owned subsidiary, has purchased a portfolio of 10 properties from Banque Hervet
in Paris.



The properties are located in established office areas of various Parisian
suburbs close to and with good communications to central Paris. They comprise
18,061 m(2) (194,413 sq ft) of office space together with 384 car parking spaces
and are let to 57 different tenants. The vacancy rate at acquisition was 2.6%.



The rental income from the properties is  €3,663,790 (£2,344,826) per annum,
which equates to €203 per m(2) (£12.06 per sq ft), and there is a significant
reversionary element.



The total purchase price for the properties was €42,525,000 (£27,216,000)
inclusive of costs, representing an initial yield of 8.6%. After planned lease
restructuring the yield is expected to rise to 9.25%. The initial return on
equity is 23.4% whilst the initial cash return on equity is 15.2% based on a
completed loan facility of €31,252,000 (£20,001,280) at an interest rate of
4.60% on a floating rate basis hedged with an interest rate cap.



L'Etoile Properties advised CLS in respect of this acquisition.



In addition to this acquisition the Board of CLS is pleased to announce that a
number of new lettings and lease renewals have been completed this year in
respect of various properties within its existing French portfolio.



In total the new leases secure the letting of 2,906 m(2) (31,281 sq ft) and an
annual rental income of €810,085 (£518,454), of which  €181,156 (£115,940)
represents increased rent on space previously let. The average rental increase
for these renewals is 37%. New lettings of previously vacant space of 717 m(2)
(7,718 sq ft) produce additional annual rental income of €137,015 (£87,960).
After the new lettings the vacancy rate of the whole French portfolio stands at
1.7%.




Executive Chairman, Sten Mortstedt, said:



"I am pleased that we are continuing to find good investment opportunities
generating good returns and that we have been able, through active asset
management, to realise some of the reversionary value in our portfolio, thus
enhancing asset values."



                                     -ends-



For further information please contact:


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



Takki Sulaiman/Ben Simons
Hansard Communications                                  +44 (0) 020 7735 9415
www.hansardcommunications.com                           +44 (0) 771 309 0135




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