CLS Holdings Regulatory News (CLI)

6 Sep 2006 07:00

Release date: 6th September 2006Embargoed until: 07:00 CLS HOLDINGS PLC ("CLS") ANNOUNCES THREE NEW GERMAN ACQUISITIONS The Board of CLS is delighted to announce the completion of a further threeacquisitions in Germany at a total consideration of ¢â€š¬71,423,307 (‚£48,252,470)inclusive of all costs. Two of the buildings are located in Munich and one inStuttgart.The acquisition and financing of the Headquarters of BrainLab AG inFeldkirchen, Munich, announced in January, has now been completed. The propertyis a new development of a total of 16,100 sq m (173,299 sq ft) and 213 carparking spaces, fully let to BrainLab on a 10 ‚½ year lease without breaks, withan annual rent of ¢â€š¬2,043,791(‚£1,380,754) and a rent free period of six months.The total acquisition cost for this investment was ¢â€š¬30,058,850 (‚£20,307,290)with an annual return on equity, after the rent free period, of 14.3% financedby a completed 7 year fixed interest rate loan facility of ¢â€š¬24,200,000 (‚£16,349,142).The property known as Maximillian Forum is located in Planegg, Munich. Theproperty was constructed in 1995 and comprises 13,906 sq m (149,683 sq ft) ofoffices and 232 car parking spaces. The property is fully let to varioustenants with two anchor tenants, Gambro and MedieGene, and generates a totalannual rent of ¢â€š¬2,035,189 (‚£1,374,942). The total acquisition cost for thisinvestment was ¢â€š¬29,322,257 (‚£19,809,942) including all costs. The annual returnon equity is 13.1%, based on a completed fixed 5 year fixed interest rate loanfacility of ¢â€š¬21,000,000 (‚£14,187,272).The property known as Step 9 is located in Stuttgart Engineering Park,Stuttgart. The property was constructed in 2004 and comprises 5,058 sq m(54,444 sq ft) of offices, 174 sq m (1,873 sq ft) of storage and 59 car parkingspaces. The property is fully let to various tenants and generates an annualrental income of ¢â€š¬794,090 (‚£536,475). The total acquisition cost was ¢â€š¬12,042,200 (‚£8,135,522). The annual return on equity is 16.1% based on acompleted 5 year fixed interest rate loan facility of ¢â€š¬ 9,300,000 (‚£6,282,935).Christian Holle of IAM has acted as consultant for CLS on all thesetransactions.Executive Chairman of CLS, Sten Mortstedt, commented:"I am pleased with these further three acquisitions of properties in Germany.CLS is making excellent progress into building up a portfolio of new officebuildings in attractive locations in or around major cities in Germany. Theportfolio now comprises 10 buildings with a book value of ¢â€š¬151 million (‚£102million). The initial financial returns are attractive, with furthersignificant potential for asset growth through yield compression and rentalgrowth." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanPer Sjƒ¶berg, Chief Executive OfficerDan Bƒ¤verstam, Chief Financial OfficerCLS Holdings plcwww.clsholdings.comTel. +44 (0)20 7582 7766Adam Reynolds/Ben SimonsHansard CommunicationsTel. +44 (0)20 7245 1100ENDCLS HOLDINGS PLC