CLS Holdings PLC Acquisitions (7382D)
July 11 2016 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 7382D
CLS Holdings PLC
11 July 2016
CLS Holdings plc
("CLS", the "Group")
announces the acquisitions of
two properties in Germany
CLS Holdings plc announces that it has exchanged contracts to
acquire two properties, one in Düsseldorf and one in Hamburg, for a
total of EUR49.5 million. Each acquisition presents a good
opportunity for CLS in a key economic centre in Germany.
Parsevalstrasse 11, Düsseldorf, which comprises 239,496 sq ft
(22,701 sqm) of mixed-use space, including 184,182 sq ft (17,458
sqm) of offices, is to be acquired for EUR43.6 million including
costs, and generates net rental income of EUR3.1 million,
reflecting a net initial yield of 7.1%. The property benefits from
a high occupancy rate and presents significant scope for future
rental uplifts and other asset management opportunities.
One of Germany's most important economic, transport and cultural
centres, Düsseldorf is a strong investment location. The property
is located close to the international airport in an established
office destination with very good transportation links to the city
centre.
Harburger Ring 35, Hamburg, comprises 36,028 sq ft (3,415 sqm)
of office space and will be acquired for EUR5.9 million including
costs, and generates net rental income of EUR0.4 million,
reflecting a net initial yield of 6.4%. The property is fully let
to two public sector bodies and, being located adjacent to the
Group's existing property Harburger Ring 33, CLS will be able to
drive value by managing the combined site.
The acquisitions will be financed with existing cash resources
and debt from local German lenders.
Fredrik Widlund, Chief Executive of CLS, commented:
"These acquisitions are another example of our commitment to
identifying opportunities that allow the Group to generate value
from its extensive asset management experience and reflect CLS's
continuing confidence in the German property market. As a long-term
investor, we believe our broader European portfolio, with its
diversified tenant base, will continue to provide a strong and
stable income stream."
-ends-
For further information, please contact:
CLS Holdings plc
www.clsholdings.com
Henry Klotz, Executive Chairman
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
Sten Mortstedt, Executive Director +44 (0)20 7582 7766
Liberum Capital Limited
Tom Fyson +44 (0)20 3100 2222
Panmure Gordon (UK) Limited
Dominic Morley
Andrew Potts +44 (0)20 7886 2500
Kinmont Limited
Jonathan Gray +44 (0)20 7087 9100
Smithfield Consultants (Financial PR)
Alex Simmons +44 (0)20 7360 4900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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