CLS Holdings PLC CLS acquires £5.5m multi-let offices in Hounslow (9608O)

TIDMCLI

RNS Number : 9608O

CLS Holdings PLC

27 September 2011

Release date: 27 September 2011

Embargoed until: 07:00

CLS Holdings plc announces acquisition of

GBP5.5 million multi-let office buildings in Hounslow

CLS Holdings plc announces that it has exchanged and completed on the acquisition of two adjacent multi-let office buildings, Falcon House and Quest House, at 115-135 Staines Road, Hounslow for GBP5.5 million. The total initial rent is GBP582,091, giving a yield after costs of 10.1% rising to GBP627,562 in 11 months (after fixed rental uplifts) and a yield of 10.9%. Including the one vacant floor of 574 sq m (6,183 sq ft), total Estimated Rental Value is GBP740,000.

Tenants include Aer Lingus, Alitalia, Telefonica O2, Vandemoortele, First Rate Exchange Services and Quest Diagnostics. The weighted average lease length to expiry is 5.2 years.

The buildings total 4,693 sq m (50,522 sq ft) over four floors. The purchase price equates to a capital value of GBP1,172 per sq m (GBP109 per sq ft), with 174 car spaces giving a high ratio of 1 space per 27 sq m (290 sq ft) of lettable area.

After debt financing, the 5 year return on equity is expected to be over 15% per annum.

Sten Mortstedt, Executive Chairman of CLS Holdings plc, commented:

"I am delighted with this acquisition, which continues our strategy of focusing on high yielding, cost--effective offices that provides us with reliable diversified cash flow from solid tenants. In addition there are a number of interesting asset management opportunities over the coming years. Being well financed places us in a very strong position to take advantage of the current market conditions for this type of acquisition".

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For further information, please contact:

CLS Holdings plc +44 (0)20 7582 7766

www.clsholdings.com

Sten Mortstedt, Executive Chairman

Henry Klotz, Executive Vice Chairman

Richard Tice, Chief Executive Officer

Smithfield +44 (0)20 7360 4900

Alex Simmons

This information is provided by RNS

The company news service from the London Stock Exchange

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