CLI Cls Holdings Plc

TIDMCLI

RNS Number : 8044N

CLS Holdings PLC

21 May 2015

   Release date:                21 May 2015 
   Embargoed until:            07:00 

CLS Holdings plc

("CLS", the "Company", the "Group")

CLS Holdings plc announces acquisition of

GBP21.7 million office building in Bracknell, UK

CLS Holdings plc announces that it has unconditionally exchanged contracts to acquire Reflex, Cain Road, Bracknell for GBP21.7 million, at an initial yield of 8%.

The building, which is fully-let to four tenants and generates a rental income of GBP1.8 million, comprises 103,400 sq ft (9,610 sqm) of Grade A office space arranged over three floors and an onsite gym and a cafe. The anchor tenant, Honda Motors, recently relocated its European headquarters to the building and has invested significantly in its offices and the surrounding area.

Bracknell town centre is currently undergoing a major GBP200 million regeneration project which will provide new retail and leisure accommodation. The office market continues to be an appealing proposition for investors. A combination of strong occupier demand and a lack of recent development have contributed to a fall in vacancy rates. This is in line with the broader market trends that have seen vacancy rates in the M4 and M3 corridors falling year-on-year and is driving rental growth.

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

"Reflex provided an opportunity to invest in an area we have monitored closely for some time. We believe strongly in the prospects for well-let properties in the M3 and M4 corridors and we are well placed to benefit from them."

-ends-

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

Fredrik Widlund, Chief Executive Officer

John Whiteley, Chief Financial Officer

   Liberum Capital Limited                                             +44 (0)20 3100 2222 

Tom Fyson

   Charles Stanley Securities                                          +44 (0)20 7149 6000 

Mark Taylor

   Kinmont Limited                                                          +44 (0)20 7087 9100 

Jonathan Gray

   Smithfield Consultants (Financial PR)                         +44 (0)20 7360 4900 

Alex Simmons

Henry Wallers

This information is provided by RNS

The company news service from the London Stock Exchange

END

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