Acquisition
CLS Holdings PLC
20 February 2001
CLS HOLDINGS plc ('CLS')
CONTINUES FRENCH ACQUISITIONS
Grundig, 5 boulevard Marcel Pourtout, Rueil-Malmaison
Chorus, 2203 Chemin de Saint Claude, Nova-Antipolis, Antibes
The Board of CLS is pleased to announce the acquisition of two further
properties in France.
The Grundig building is located in Rueil Malmaison, a suburb to the west of
Paris. The property is a freehold comprising 2,570 sq m (27,663 sq ft) of office
space and 53 car parking spaces. The property is fully let to Grundig France at
a rent of FFr 1,668,217 (£162,000) p.a. The total purchase consideration
inclusive of costs for this property was FFr 18,500,000 (£1,796,000), providing
an initial yield of 9.0%. The return on equity is 22.0% based on a completed
loan facility of FFr 14,955,000 (£1,449,000) with fixed interest for a five-year
period of 5.95% p.a
The second investment is Chorus, located in Nova-Antipolis, Antibes. The
property is a freehold comprising 4,333 sq m (46,640 sq ft) of office space and
145 car parking spaces. The property is fully let to various tenants, with the
exception of 4 car parking spaces. The anchor tenant is an agency for the French
government and the total annual rent is FFr 3,592,000 (£348,000). The total
purchase price for the property was FFr 37,000,000 (£3,592,000) inclusive of
costs, representing an initial yield of 9.7%. The return on equity is 23.9%
based on a completed loan facility of FFr 29,000,000 (£2,815,500), with interest
of 5.8% p.a.
Executive Chairman, Sten Mortstedt, said:
'It is becoming increasingly difficult in today's market to find properties
meeting our investment criteria of high yielding, well let office buildings in
attractive office locations. I am therefore very pleased that we have
completed these two further acquisitions, which meet our investment criteria'.
For further information, please contact:
Sten Mortstedt, CLS Holdings plc 020 7582 7766
Glyn Hirsch, CLS Holdings plc 020 7582 7766