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CLS Holdings PLC (CLI)

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Tuesday 31 December, 2019

CLS Holdings PLC

Sale of the UK regional office portfolio

RNS Number : 3245Y
CLS Holdings PLC
31 December 2019
 

 

                                                                                                            PRESS RELEASE

 

Release date:                31 December 2019

Embargoed until:           Immediate release

 

 

CLS Holdings plc ("CLS")

announces the sale of its UK regional office portfolio

 

CLS announces the sale of a portfolio of 19 regional offices in the UK for an aggregate cash consideration of c.£65.0 million to Elite Capital Partners - a Singaporean investment firm.

 

The offices are located across the UK outside of the South East and, following major lease re-gears last year, have less active asset management potential. The sale of the portfolio is in line with our strategy of actively recycling our capital and focusing the UK portfolio on London and the South East. Following the completion of this transaction, CLS will hold only two assets in the UK located outside of the South East.

 

The sales of 17 of the 19 offices, which are held freehold or heritable title, have simultaneously exchanged and completed for £62.1 million. The sales for £2.9 million of the remaining two assets, which are held long leasehold, have exchanged and are expected to complete in Q1 2020, subject to the consent of the freeholder.  All the offices were unencumbered at the point of sale.

 

The portfolio comprises 618,223 sq. ft and is 97.5% let on FRI leases to various UK Government bodies with a WAULT of 4.1 years to breaks. The portfolio has net rent of £6.5 million per annum at an average of £10.62 per sq. ft. The portfolio was valued at £66.4 million as at 30 June 2019 and the sale proceeds represent a small loss of £1.4 million, a discount of 2.1%.  However, CLS has in addition received over £3.2 million in rent from this portfolio since 30 June 2019.

 

Commenting on the disposal, Fredrik Widlund, Chief Executive Officer of CLS, said:

 

"This transaction is a significant step in implementing our strategy of focusing our UK portfolio on London and the South East office markets, a region in which we remain confident of the long-term prospects. We continue to see significant opportunities for acquisitions across our core markets and this transaction will allow us to recycle capital to capitalise on those opportunities."

 

-ends-

 

 

 For further information, please contact:

 

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

+44 (0)20 7582 7766

 

Liberum Capital Limited

Richard Crawley

Jamie Richards

+44 (0)20 3100 2222

 

Whitman Howard

Hugh Rich

+44 (0)20 7659 1261

 

Elm Square Advisers Limited

Jonathan Gray

+44 (0)20 7823 3695

 

Smithfield Consultants (Financial PR)
Alex Simmons

Rob Yates

+44 (0)20 3047 2546

 

 

 

 


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