CLS Holdings PLC Acquisition (2897N)
January 29 2021 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 2897N
CLS Holdings PLC
29 January 2021
Release date: 29 January 2021
Embargoed until: 07:00 am
CLS Holdings plc ("CLS" or the "Group")
announces the acquisition of three office buildings across
Germany for EUR89.7 million
CLS announces that it has unconditionally exchanged contracts to
acquire a portfolio of three office buildings in D ü sseldorf,
Berlin and Hamburg for EUR89.7 million, excluding costs, from
Commodus Real Estate.
The three properties are occupied by 31 tenants, providing a
diversified and stable cashflow. The buildings are currently 93%
occupied with a WAULT of 4.9 years and the current average rent is
22% below estimated market rents, thereby providing an opportunity
to actively manage the assets to bring the rent to market levels
over the medium term. The net initial yield on the portfolio is
4.8% with a reversionary yield of 6.1%.
All three properties have good energy and sustainability
credentials and openable windows.
Hansaallee 299, D ü sseldorf, is a modern building which was
developed in 2004. It is the largest property in the portfolio
comprising 16,622 sqm (178,918 sq. ft) of space and 252 parking
spaces. It is located in the 'Seestern' district and sits opposite
Loerick underground station. The building has excellent
connectivity with access to D ü sseldorf Central Station in 20
minutes and the airport in 30 minutes. It is fully let to eight
tenants with a WAULT of 3.9 years and has a current rent of EUR2.5
million.
Storkower Strasse 132, Berlin was comprehensively refurbished in
2020 and is situated between Prenzlauer Berg and Friedrichshain in
the east of Berlin, in one of the most popular and fastest growing
districts. The building has 6,105 sqm (65,714 sq. ft) of lettable
space, fully let to ten tenants with a long WAULT of over 8 years.
The current rent is EUR1.1 million.
The third property, Wendenstrasse 408 in Hamburg, is a 9,676 sqm
(104,152 sq. ft) building with 191 parking spaces situated in
Hamburg City Süd, a fast-growing submarket of the city. It is let
to 13 tenants with a WAULT of 3.9 years. The current rent is EUR0.9
million. With an average rent of EUR8.4 / sqm / month, the building
is materially underrented and presently 21% vacant, providing an
immediate opportunity to capture market rents.
The acquisition of the portfolio is expected to complete latest
in Q2 2021.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
"These assets are high quality, well located German offices and
benefit from a diversified tenant base with the opportunity to
secure market rents and valuation uplifts in the years ahead. In
the past year CLS has been able to capitalise on a range of
opportunities in our target markets, acquiring or committing to
acquire assets for over GBP280 million while remaining disciplined
in our investment criteria."
-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)7970 174 353
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