CLS Holdings PLC Sale of the UK regional office portfolio (3245Y)
December 31 2019 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 3245Y
CLS Holdings PLC
31 December 2019
PRESS RELEASE
Release date: 31 December 2019
Embargoed until: Immediate release
CLS Holdings plc ("CLS")
announces the sale of its UK regional office portfolio
CLS announces the sale of a portfolio of 19 regional offices in
the UK for an aggregate cash consideration of c.GBP65.0 million to
Elite Capital Partners - a Singaporean investment firm.
The offices are located across the UK outside of the South East
and, following major lease re-gears last year, have less active
asset management potential. The sale of the portfolio is in line
with our strategy of actively recycling our capital and focusing
the UK portfolio on London and the South East. Following the
completion of this transaction, CLS will hold only two assets in
the UK located outside of the South East.
The sales of 17 of the 19 offices, which are held freehold or
heritable title, have simultaneously exchanged and completed for
GBP62.1 million. The sales for GBP2.9 million of the remaining two
assets, which are held long leasehold, have exchanged and are
expected to complete in Q1 2020, subject to the consent of the
freeholder. All the offices were unencumbered at the point of
sale.
The portfolio comprises 618,223 sq. ft and is 97.5% let on FRI
leases to various UK Government bodies with a WAULT of 4.1 years to
breaks. The portfolio has net rent of GBP6.5 million per annum at
an average of GBP10.62 per sq. ft. The portfolio was valued at
GBP66.4 million as at 30 June 2019 and the sale proceeds represent
a small loss of GBP1.4 million, a discount of 2.1%. However, CLS
has in addition received over GBP3.2 million in rent from this
portfolio since 30 June 2019.
Commenting on the disposal, Fredrik Widlund, Chief Executive
Officer of CLS, said:
"This transaction is a significant step in implementing our
strategy of focusing our UK portfolio on London and the South East
office markets, a region in which we remain confident of the
long-term prospects. We continue to see significant opportunities
for acquisitions across our core markets and this transaction will
allow us to recycle capital to capitalise on those
opportunities."
-ends-
For further information, please contact:
CLS Holdings plc
(LEI: 213800A357TKB2TD9U78)
www.clsholdings.com
Fredrik Widlund, Chief Executive Officer
Andrew Kirkman, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
Richard Crawley
Jamie Richards
+44 (0)20 3100 2222
Whitman Howard
Hugh Rich
+44 (0)20 7659 1261
Elm Square Advisers Limited
Jonathan Gray
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
Alex Simmons
Rob Yates
+44 (0)20 3047 2546
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END
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