Acquires EU32m office buildings in Hamburg Germany

RNS Number : 2492A

CLS Holdings PLC

19 December 2014

 

Release date:                19 December 2014

Embargoed until:            07:00

CLS Holdings plc

("CLS", the "Company", the "Group")

CLS Holdings plc announces acquisition of

€32.35 million multi-let office buildings in Hamburg, Germany

CLS Holdings plc announces that it has unconditionally exchanged contracts to acquire two modern multi-let office buildings in Hamburg, Germany for €32.35 million before costs.

The buildings, known as Silo, Schellerdamm 16 and Fleethaus, Schellerdamm 2, Hamburg, provide lettable space of 18,665 sqm over 16 floors, and 287 car parking spaces in a secure multi-storey garage.  They are currently 90% let, benefitting from a diversified income base from 39 tenants, and generate rental income of €2.2 million per annum, producing a net initial yield of 6.4%.  Completion is due in mid-January, and debt is to be provided by a regional Sparkasse lender.

These high-quality offices are located in Harburg, a district in the southern part of Hamburg, which is seeing significant investment in infrastructure and is developing into a popular vibrant mixed-use destination.

Sten Mortstedt, Executive Chairman of CLS Holdings plc, commented:

"I am pleased that we have managed to secure this high-quality office acquisition in Hamburg.  The two modern office buildings are well-located and I expect that our in-house active management will ensure a good relationship with the tenants, further reduce the vacancy and improve the stable cash flow. We have secured a low cost of debt, enabling this investment to provide the Group with high returns on equity."

-ends-

For further information, please contact:

CLS Holdings plc                                                         [phone]

www.clsholdings.com   

Sten Mortstedt, Executive Chairman

Henry Klotz, Executive Vice Chairman

Fredrik Widlund, Chief Executive Officer

John Whiteley, Chief Financial Officer

Liberum Capital Limited                                             [phone]

Tom Fyson

Charles Stanley Securities                                          [phone]

Mark Taylor                                                                  

Kinmont Limited                                                          [phone]

Jonathan Gray

Smithfield Consultants (Financial PR)                         [phone]

Alex Simmons

 

END

 

 

MSCDGBDDUDBBGSI