CLS Holdings PLC Acquisition (5160G)

TIDMCLI

RNS Number : 5160G

CLS Holdings PLC

30 May 2017

CLS Holdings plc ("CLS") announces the acquisition of Gotic Haus in Dortmund, Germany

CLS announces that it has exchanged contracts to acquire a multi-let office property in Dortmund, Germany, for EUR35.6 million, excluding costs, from a US investment manager.

Gotic Haus, Westfalendamm 100, is a multi-let property comprising 22,296 sqm (239,992 sq ft) of office space which, with an occupancy rate of 94.6%, currently generates a rental income of EUR2.8 million per annum, reflecting a net initial yield of 7.1%.

The property has a diversified tenant base which provides a stable income from 15 tenants and a weighted average unexpired lease term of 3.3 years. The property is located on the "Buro Corridor" and adjacent to the U-Bahn station Kohlgartenstrasse, from which it takes less than ten minutes by train to reach the city centre.

The transaction will be financed with existing cash resources and debt from a local German bank.

Fredrik Widlund, Chief Executive of CLS, commented:

"The acquisition of Gotic Haus is consistent with our strategy of investing in multi-let, high-quality offices in major cities across our three core markets: the UK, Germany, and France. The letting market in Dortmund continues to improve and this investment complements our existing portfolio whilst offering several asset management opportunities".

-ends-

For further information, please contact:

 
 CLS Holdings plc 
  www.clsholdings.com 
  Fredrik Widlund, Chief Executive Officer    [phone] 
  John Whiteley, Chief Financial Officer       7766 
 Liberum Capital Limited 
  Richard Crawley                             [phone] 
  Jamie Richards                               2222 
 Panmure Gordon (UK) Limited 
  Dominic Morley                              [phone] 
  Andrew Potts                                 2500 
 Elm Square Advisers Limited                  [phone] 
  Jonathan Gray                                3695 
 Smithfield Consultants (Financial 
  PR)                                         [phone] 
  Alex Simmons                                 2476 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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May 30, 2017 02:01 ET (06:01 GMT)