CLS announces sales in Munich and Dusseldorf

RNS Number : 2448G

CLS Holdings PLC

22 July 2019

 

                                                                                                            PRESS RELEASE

Release date:                22 July 2019

Embargoed until:           Immediate release

CLS Holdings plc ("CLS")

announces €57.4m of sales in Munich and Düsseldorf, Germany

CLS today announces the exchange of contracts to sell East Gate and Schanzenstrasse in Germany for a total of €57.2 million. The decision to sell the properties was driven by their low Net Initial Yield ("NIY") and the limited scope for CLS to add further value. Completion of the sales is expected before the end of September 2019.

East Gate, Kapellenstrasse 12, Feldkirchen, located in Greater Munich is being sold for €45.3 million. The sale price achieved is 16% above the 31 December 2018 valuation and reflects a NIY of 4.3%. The property comprises 17,124 sqm (184,321 sq. ft) of high quality, modern and flexible office space. The building was previously the headquarters of a medical technology company that vacated the property in 2017. CLS has since transformed it into a multi-let, high tech hub which is currently over 90% let.

Schanzenstrasse 76, located in Düsseldorf, is being sold to a residential developer for €11.9m. The sale price achieved is 76% above the 31 December 2018 valuation and reflects a NIY of 3.3%. The property comprises 3,095 sqm (33,315 sq. ft) and is currently let to the City of Düsseldorf until the end of the year. Over the last 5 years, the area has been significantly improved with the development of high-quality residential buildings.

Commenting on both sales, Fredrik Widlund, Chief Executive of CLS, said:

"I am delighted that we have concluded these two new sales which realise significant value from our active asset management strategy. Our in-house property teams have done a fantastic job repositioning and letting East Gate, and identifying the residential development opportunity at Schanzenstrasse. The sale proceeds will be reinvested in higher yielding properties where we can add long-term value."

-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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