Acquisition

RNS Number : 4898H

CLS Holdings PLC

13 March 2018

 

Release date:                13 March 2018

Embargoed until:            7.00 am

CLS Holdings plc ("CLS") announces the acquisition of

Harman House in Uxbridge, United Kingdom

CLS announces that it has unconditionally exchanged contracts to acquire Harman House, 1 George Street, Uxbridge, for £51 million including costs.

The property comprises 129,060 sq. ft. (11,990 sqm) of office space arranged over nine floors which, with an occupancy rate of 98%, and currently generates an annual rental income of £3.52 million, producing a net initial yield for CLS of 6.9%. The property has a reversionary rent profile with an estimated yield of 7.8% based on market rents.

Harman House was extensively refurbished in 2014 and has a diversified tenant base, providing a stable income from 10 tenants and a weighted average unexpired lease term of 7.9 years (or 5.8 years to first break).

The property is well-located in the town centre and adjacent to the Underground station which offers fast links into central London. Uxbridge is a well-established office location and home to a broad range of national and international occupiers.

The transaction will be financed from existing CLS cash resources.

Fredrik Widlund, Chief Executive of CLS, commented:

"In line with our strategy, the acquisition of Harman House adds to our portfolio a high-yielding, multi-let office property adjacent to good transport links, and which offers a stable and diversified income stream from strong covenants. We believe there is significant scope for us to add value by capturing existing rental potential, and increasing it further through asset management initiatives."

-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]
Whitman Howard Limited Hugh Rich	[phone]
Elm Square Advisers Limited                                                           Jonathan Gray	[phone]
Smithfield Consultants (Financial PR)                                              Alex Simmons Sam Moodie	[phone]

 

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