CLS Holdings PLC Acquisition (6659H)
December 07 2020 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 6659H
CLS Holdings PLC
07 December 2020
Release date: 7 December 2020
Embargoed until: 07:00 am
CLS Holdings plc ("CLS" or the "Group")
announces the acquisitions of properties in Berlin and
Watford
CLS announces that it has unconditionally exchanged contracts to
acquire two office properties in Berlin, Germany, and Watford,
United Kingdom, for a combined total of GBP55.9 million excluding
costs.
The first property, Kaiserin-Augusta-Allee 112 & 113 (
'Goldstuck'), is a six-storey office composed of two adjoined
buildings located in North-West Berlin (Charlottenburg), adjacent
to the River Spree. Goldstuck was acquired from Deutsche Investment
KVG for EUR43.5 million. The property is well-situated, being close
to several bus stations which provide direct access to central and
western Berlin. Its central location also allows many existing
occupiers to walk or cycle to the office. Goldstuck comprises
93,775 sq. ft (8,712 sqm) and benefits from 93 car parking
spaces.
The building is currently 29% let following the recent departure
of the previous anchor tenant. The remaining accommodation provides
a WAULT of 1.9 years and EUR545,000 of current contracted rent. The
current occupancy and low passing rent provide an opportunity to
refurbish comprehensively and reposition the existing asset, re-let
and capture market rents in the low vacancy Berlin market as well
as strengthening its sustainability rating in line with Group
targets. The building has an estimated reversionary yield of 5.6%
once fully let.
The second property, Radius House, is located on Clarendon Road
in Watford and was acquired from M&G Real Estate for GBP16.9
million. The property comprises 41,226 sq. ft (3,830 sqm) and is a
short walk from Watford town centre and Watford Junction overground
station, providing direct access to London Euston station in 16
minutes.
The building is fully let to four tenants with a WAULT of 8.1
years. The current contracted rent of GBP1.04 million reflects a
net initial yield of 5.6%. 51% of the current income is contracted
to The Secretary of State for Housing, Communities and Local
Government until 2030 without break, offering secure long-term
income.
Both acquisitions will complete in early 2021.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
"These acquisitions provide a combination of long-term, secure
income and an opportunity to capture significant reversion through
our active asset management approach. This demonstrates CLS' broad
capabilities and ability to source excellent deals in our key
markets. CLS has remained disciplined in its approach to
acquisitions but has found a few high-quality opportunities which
complement the existing portfolio. Combined with our earlier
acquisitions in Germany and the UK, CLS has acquired nearly GBP170
million of assets so far this financial year, significantly
enhancing our portfolio."
-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
Panmure Gordon
Hugh Rich
+44 (0)20 7886 2733
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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