CLS Holdings Regulatory News (CLI)

17 Mar 2005 07:00

Embargoed: 0700hrs 17 March 2005 CLS HOLDINGS PLC ("CLS") ACQUISITION IN FRANCE The Board of CLS is pleased to announce that its wholly owned subsidiaryCitadel Holdings plc has acquired 23 rue Raspail, Ivry-sur-Seine.This freehold property is located in Ivry-sur-Seine, a suburb to the south ofParis adjoining the left bank. The property was constructed in 1993 andcomprises 5,547 sq m of office space and 125 car parking spaces. The propertyis fully let to three different tenants. The net rental income from theproperty is ¢â€š¬1,014,248 (‚£696,831) which equates to ¢â€š¬182.85 per sq m (‚£11.81 persq ft) inclusive of car parking. The total purchase price for the property was¢â€š¬11,605,000 (‚£8,065,475) inclusive of all costs, representing an initial yieldof 8.7%. Based on the completed loan facility of ¢â€š¬9,500,000 (‚£6,602,500) withan interest rate of 3.4% per annum on a floating rate basis, the return onequity is 40.7% whilst the cash return on equity is 23.4%.L'Etoile Properties advised CLS in respect of this acquisition.Executive Chairman, Sten Mortstedt, commented:"I am very pleased with this further acquisition of a high quality officebuilding in the Ile de France area. The financial returns represented by thisinvestment are very attractive. We are continuing to seek further acquisitionsin France." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanTom Thomson, Chief Executive & Vice ChairmanDan Bƒ¤verstam, Chief Financial OfficerCLS Holdings plcTel. +44 (0)20 7582 7766www.clsholdings.comBen SimonsHansard CommunicationsTel. +44 (0)20 7245 1100ENDCLS HOLDINGS PLC