Acquisition

RNS Number : 0063A

CLS Holdings PLC

21 March 2017

 

Release date:                21 March 2017

Embargoed until:            7.00 am

CLS Holdings plc

("CLS", the "Group")

announces the acquisition of

Network Perlach property in Munich, Germany

CLS Holdings plc announces that it has exchanged contracts to acquire a multi-let office property in Perlach, in the south-east of Munich, Germany, for €15.3 million.

Network Perlach, Unterhachinger Strasse 75, Munich, comprises 9,449 sqm (101,708 sq ft) of office space which, with an occupancy rate of 88%, currently generates a rental income of €821,000 per annum, reflecting a net initial yield of 5.1%, or 6.2% when fully let.

The property has a diversified tenant base that provides a stable income, with an estimated rental value of some €1.2 million, reflecting an ERV yield of 7.4%.

Munich is experiencing a period of rising rents resulting from strong leasing activity which has driven the vacancy rate of offices in the city down to around 3%. The property is excellently located 350m from the S-Bahn station in Perlach, 18 minutes by rail from Munich Main Station.

Fredrik Widlund, Chief Executive of CLS, commented:

"The acquisition of Network Perlach is consistent with our strategy of investing in multi-let, high-quality offices and we look forward to enhancing the returns from the property to maximise its potential in the medium term."

-ends-

For further information, please contact:

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

 

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