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CLS Holdings PLC — Capital/Financing Update 2014
Dec 19, 2014
4729_rns_2014-12-19_4541bc1d-a2bf-4d20-8c38-aa9cda9be239.pdf
Capital/Financing Update
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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."
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| For further information, please contact: | |
| CLS Holdings plc www.clsholdings.com Sten Mortstedt, Executive Chairman Henry Klotz, Executive Vice Chairman Fredrik Widlund, Chief Executive Officer John Whiteley, Chief Financial Officer |
+44 (0)20 7582 7766 |
| Liberum Capital Limited Tom Fyson |
+44 (0)20 3100 2222 |
| Charles Stanley Securities Mark Taylor |
+44 (0)20 7149 6000 |
| Kinmont Limited Jonathan Gray |
+44 (0)20 7087 9100 |
| Smithfield Consultants (Financial PR) Alex Simmons |
+44 (0)20 7903 0669 |