CLS Holdings PLC Acquires EU32m office buildings in Hamburg Germany (2492A)

TIDMCLI

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

EUR32.35 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 EUR32.35 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 EUR2.2 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

This information is provided by RNS

The company news service from the London Stock Exchange

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