TIDMCLI 
 
RNS Number : 0141M 
CLS Holdings PLC 
17 May 2010 
 

 
 
 
 
 
 
 
 
 
 
 
Release date:              17 May 2010 
Embargoed until:         7:00am 
 
                                CLS HOLDINGS PLC 
                      ("CLS", THE "COMPANY" OR THE "GROUP") 
                          INTERIM MANAGEMENT STATEMENT 
                  FOR THE PERIOD 1 JANUARY 2010 TO 17 MAY 2010 
 
The Company today announces its Interim Management Statement for the period 1 
January 2010 to 17 May 2010. 
 
HIGHLIGHTS 
 
·     New leases, lease renewals and extensions completed on 12,214 sq m 
(131,500 sq ft) 
·     Completed site assembly for substantial development adjacent to Spring 
Gardens, Vauxhall 
·     40% of rent roll let to Government tenants 
·     Vacancy rate at 4.8% by rental value (31 December 2009: 4.5%) 
·     Weighted average cost of debt of 4.1% 
·     GBP9.4 million of gain realised on sale of corporate bonds 
·     Over GBP130 million of internal resources available for investment 
 
PROPERTY REVIEW 
 
UK - Since 1 January 2010, sentiment in the investment market in central London 
has continued to improve, although bank financing remains relatively expensive. 
The occupational market in central London has also seen a gradual increase in 
demand from occupiers and, with a lack of grade A accommodation, this demand has 
focused on good quality, second-hand space in good locations. 
 
In the Group's portfolio, lease renewals were completed on 580 sq m (6,250 sq 
ft), and 2,791 sq m (30,000 sq ft) of space became vacant, of which new lettings 
were achieved on 2,269 sq m (24,500 sq ft), resulting in a net increase of the 
vacancy rate by rental value from 4.5% at 31 December 2009 to 5.2%.  Part of the 
upcoming vacant space is planned to be used by our serviced office business. 
 
In April we acquired 100 Vauxhall Walk, SE11, adjacent to our existing holdings, 
for GBP1.6 million.  This completed the site assembly for a substantial 
development of over 28,000 sq m (301,400 sq ft) adjacent to our successful 
Spring Gardens holding in Vauxhall. 
 
FRANCE - In 2010 to date, the French investment market has been characterised by 
investor demand significantly exceeding the supply of good quality product, 
generating a fall of 25 basis points in yields, and we expect these to fall 
further in Q2.  Investment market activity has more than doubled to EUR900 million 
against the equivalent quarter in 2009, whereas the letting market has remained 
at the same level as a year earlier. 
 
Whilst we believe there will be no significant rental growth in France during 
2010, the void rate remains low at 4.4% by rental value, marginally up from 4.2% 
at the end of 2009.  In the period under review leases on 7,629 sq m (82,100 sq 
ft) of space expired and 7,643 sq m (82,300 sq ft) was leased or renewed. 
 
GERMANY - There has been a material increase in investment market activity in 
Germany in the first quarter of 2010 compared to the same quarter in 2009. 
Since the end of 2009, prime yields have fallen by 10 basis points due to a lack 
of core investment product, but the letting market remains weak and is not 
expected to improve before the end of the year. 
 
Intensive asset management of our German portfolio has maintained the vacancy 
rate at 5.6% (31 December 2009: 5.8%), with leases expiring on 1,706 sq m 
(18,400 sq ft) of space, and 1,722 sq m (18,500 sq ft) being leased or renewed. 
Tenant discussions are ongoing in respect of a number of buildings and we expect 
the occupational markets to remain challenging for some time. 
 
SWEDEN - The void rate of the Vänerparken portfolio, the Group's only property 
investment in Sweden, remained at 1.9% throughout the period under review. 
 
FINANCIAL UPDATE 
 
At 31 March 2010 borrowings were GBP553.6 million (31 December 2009: GBP592.8 
million) and the weighted average cost of debt was 4.1%.  Cash and undrawn 
facilities stood at GBP79.8 million (31 December 2009: GBP70.3 million), and the 
Group held corporate bonds with a value of GBP58.8 million (31 December 2009: 
GBP70.0 million). 
 
At 31 March 2010 the Group had 54 bank loans from 18 banks; none of the bank 
loan covenants was in breach. 
 
Underlying profit continues to be resilient, with stable net rental income, high 
debt collection rates, and tightly controlled costs.  In Q1 2010, the Group 
realised a gain of GBP9.4 million on the sale of corporate bonds. 
 
The Company's Half-yearly financial report will be published in late August. 
 
DIRECTORATE CHANGES 
 
On 11 May 2010, Richard Tice joined the Board as Deputy Chief Executive, Jennica 
Mortstedt as a Non-Executive Director and Bengt Mortstedt retired as a 
Non-Executive Director. 
 
Executive Chairman of CLS, Sten Mortstedt, commented: 
 
"Our focus on active portfolio management has been successful and has kept our 
vacancy rate low across the portfolio.  Our average cost of debt is low, and, 
with significant resources at its disposal, the Company remains well placed to 
take advantage of investment opportunities as they arise." 
 
                                     -ends- 
 
For further information, please contact: 
 
CLS Holdings plc 
   +44 (0)20 7582 7766 
Sten Mortstedt, Executive Chairman 
Henry Klotz, Chief Executive Officer 
Richard Tice, Deputy Chief Executive Officer 
 
 
Kinmont Limited 
    +44 (0)20 7087 9100 
Jonathan Gray 
 
Smithfield Consultants 
 +44 (0)20 7360 4900 
Alex Simmons / Will Swan 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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