Last checked at 5 Mar 2007 07:00
Release date: Monday 5th March 2007
Embargoed until: 0700hrs
CLS HOLDINGS PLC ("CLS") ANNOUNCES A FURTHER GERMAN ACQUISITION
The Board of CLS Holdings plc is pleased to announce that it has acquired a further property in Germany for a total consideration of ¢â€š¬18 million inclusive of all costs.
The property known as Hans Bockler Strasse, Bochum comprises 25,115 sq m (270,460 sq ft) of offices and retail space, together with 643 car parking spaces. The main tenant is the City of Bochum who occupy 9,740 sq m (104,850 sq ft), 39% of the total let area. Their lease matures on 31st December 2012 and has no breaks. The property was constructed in the 1960s and has been partly refurbished. The property currently has 10,693 sq m (115,102 sq ft) of vacant space, representing 42% of the net lettable area.
The existing rental income is ¢â€š¬1,084,000 (‚£728,990) and estimated rental value of the property once fully let is ¢â€š¬2,400,000, (‚£1,614,000) after refurbishments.
The initial yield is 6% which is expected to increase significantly once further lettings are achieved.
Executive Chairman of CLS Holdings plc, Sten Mortstedt, commented:
"This investment offers potential for a significant increase in value through refurbishment and reletting of the vacant space."
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For further information, please contact:
Sten Mortstedt, Executive Chairman
Per SjĦberg, Chief Executive Officer
Dan Bƒ¤verstam, Chief Financial Officer
CLS Holdings plcwww.clsholdings.com Tel. +44 (0) 20 7582 7766Ben Simons/Adam ReynoldsHansard Group plcTel. +44 (0) 20 7 245 1100
CLS HOLDINGS PLC