CLS Holdings Regulatory News (CLI)

24 Apr 2006 07:00

Release date: 24th April 2006Embargoed until: 07:00 CLS HOLDINGS PLC ("CLS") ANNOUNCES THREE NEW GERMAN ACQUISITIONS The Board of CLS is delighted to announce the exchange of contracts for threefurther office properties in Germany at a total consideration of ¢â€š¬19.5 million(‚£13.55 million) inclusive of all costs. One building is located in Munich andtwo in Hamburg.The property known as Rƒ¼desheimer Strasse 9, Munich is newly built having beencompleted in 2002, and comprises 2,587 sq m (27,600 sq ft) of offices andstorage space together with 35 car parking spaces. The building is 100% let tothree tenants with 82% of the rental income secured until October 2014 and theremainder on five year leases.Harburger Ring 33, Hamburg comprising 3,330 sq m (35,530 sq ft) of officesconstructed in 1993 is 100% let to the City of Hamburg until November 2013.Merkurring 33-35, situated in a business park just north of Hamburg city centrecomprises 8,262 sq m (88,156 sq ft) of offices and production / warehousefacilities. The building constructed in 2002, is let to York, a global heating,ventilation and air conditions manufacturer until the end of 2011.The properties, which were purchased separately, generate an annual rent of ¢â€š¬1,402,500 (‚£975,000) and were purchased on an initial yield including all costsof 7.3%.The initial anticipated return on equity on completed loan facilities of ¢â€š¬15.18million (‚£10.55 million) for the three properties is 19.8%, whilst the cashreturn on equity is 15.4%.Furthermore CLS has now completed the acquisition and financing of AdlershoferTor, Berlin, announced in January this year. The purchase price was ¢â€š¬39.3million (‚£27.24 million) inclusive of all costs. The building comprises 19,715sq m (212,212 sq ft) office and retail space with 45% of the building let toKaufland, the German retailer and an average lease length of over 13 years.Christian Holle of IAM has acted as consultant for CLS on all thesetransactions.The value of the German portfolio of CLS (at cost price and includingproperties where contracts have been exchanged) now stands at ¢â€š¬108.25 million(‚£75.23 million). CLS intends to make further selective acquisitions inGermany, where current yields generate attractive returns on equity on a gearedbasis, with potential upside in rental growth.Executive Chairman, Sten Mortstedt, commented:"These investments offer both high initial returns and the possibility forfurther value enhancement in a recovering German economy. We are continuing tosee good investment opportunities in Germany and anticipate furtheracquisitions in the future." -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 7766Ben SimonsHansard CommunicationsTel. +44 (0)20 7245 1100ENDCLS HOLDINGS PLC