Acquisition

RNS Number : 8588E

CLS Holdings PLC

09 July 2019

 

                                                                                                            PRESS RELEASE

Release date:                9 July 2019

Embargoed until:           Immediate release

CLS Holdings plc ("CLS")

acquires CONNECT, Von-der-Wettern-Strasse 27, Cologne, Germany

CLS announces that it has exchanged contracts to acquire CONNECT, a 140,491 sq. ft / 13,052 sqm multi-let office property in Cologne, for €30.5 million excluding costs. The purchase price reflects a net initial yield of 5.1%; the reversionary yield is estimated to be over 6%. The property is fully let and has a WAULT of 2.2 years.

CONNECT is one of the most prominent properties in the Airport Business Park in Cologne, a well-connected and growing destination in the south of Cologne between the city-centre and Cologne-Bonn Airport. The property is located adjacent to the S-Bahn station Köln Frankfurter Strasse.

The building is a well maintained and modern office building, with a strong tenant mix and a popular restaurant on the ground floor. The property consists of an 11-storey tower and five-storey lower main building, and is easily sub-dividable, making it both flexible and easy to re-let.

Cologne has a vacancy rate of circa 2.5% with limited supply of new offices and a growing population making it an attractive destination for investments.

CLS intends to finance the acquisition initially through existing cash resources with completion expected in 4-6 weeks.

Commenting on the acquisition, Fredrik Widlund, Chief Executive Officer of CLS, said:

"This acquisition gives us an opportunity to utilise our in-house German asset and property management team to deliver value to our investors over the long-term. Cologne has been an area of interest for CLS for several years, and this transaction allows us to enter the market at an exciting time."

-ends-

 For further information, please contact:

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

[phone]

Liberum Capital Limited

Richard Crawley

Jamie Richards

[phone]

Whitman Howard

Hugh Rich

[phone]

Elm Square Advisers Limited

Jonathan Gray

[phone]

Smithfield Consultants (Financial PR)
Alex Simmons

Rob Yates

[phone]

 

END

 

 

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