Last checked at 14 Nov 2007 12:08
Release Date: 14th November 2007
CLS HOLDINGS plc ("CLS")
ANNOUNCES A LETTING OF 23,800 SQ M (256,000 SQ FT) AT RATHAUS CENTER BOCHUM,
GERMANY
CLS is pleased to announce a letting to the City of Bochum of 23,800 sq m (256,000 sq ft).
The lease is for a term of 30 years with no break option and is indexed annually in accordance with the German CPI. The initial rent is ¢â€š¬2,285,000 per annum (‚£1,613,100 per annum, ¢â€š¬96 per sq m per year, ‚£6.30 per sq ft per year), subject to 12 months' rent free. The yield is predicted to be 6.75% following refurbishment of the property.
The City will use the property as a Town Hall to serve the citizens of Bochum. Departments will be located centrally, close to the old Town Hall and other administration offices.
Approximately 9,740 sq m is currently let to the City in the upper floors. Another 11,060 sq m of vacant ground floor and first floor space formerly used as retail, will now be redeveloped into office space. In addition to this, the City will use 3,000 sq m to locate its archive in the basement. Following this letting, the property will be fully let with the exception of a small retail premises.
CLS will refurbish and modernise the property within the next 16 months. The costs of refurbishment are in the region of ¢â€š¬20.2m including VAT (‚£14.3m).
Executive Chairman of CLS, Sten Mortstedt, commented:
"We purchased the property at the beginning of this year and regarded the vacant space as an opportunity to add value. We are delighted that the City of Bochum is now fully utilising the Rathaus Center."
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For further information, please contact:
CLS Holdings plc.
Sten Mortstedt, Executive Chairman
Per SjĦberg, Chief Executive Officer
CLS Holdings plc.www.clsholdings.comTel. +44 (0) 20 7582 7766
CLS HOLDINGS PLC