Acquisition

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 €35.6 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 €2.8 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".

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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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