Disposal

RNS Number : 9392T

CLS Holdings PLC

24 July 2020

 

  PRESS RELEASE

Release date:  24 July 2020

Embargoed until:  07:00

CLS Holdings plc ("CLS") announces

sale of Albert-Einstein-Ring 17-21, Hamburg for €36.45 million

CLS announces that it has unconditionally exchanged contracts to sell Albert-Einstein-Ring 17-21 in Hamburg for €36.45 million excluding costs, with completion expected on 30 September 2020.

Albert-Einstein-Ring 17-21 was acquired by CLS in 2017 as part of the Metropolis portfolio and consists of 13,419 sqm (144,441 sq. ft) of offices located in the Bahrenfeld area of Hamburg.  Although the property offers long-term potential as the area and public transport is improved over the coming decade, the property is currently experiencing higher levels of vacancy and no longer meets our portfolio criteria. The sale, at a price 38% above the 31 December 2019 valuation reflecting a net initial yield of 3.6%, allows CLS to crystallise the future potential of the building and area today so that we can redeploy funds into more immediate opportunities.

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

"Whilst Hamburg remains one of our key markets, this disposal captures value for our investors today and releases capital that can be recycled earlier into opportunities with a better income profile. We continue to see exciting opportunities in our key markets and strongly believe in the resilience and attraction of well-located, affordable offices in non-prime locations."

-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]

Panmure Gordon

Hugh Rich

[phone]

Elm Square Advisers Limited

Jonathan Gray

[phone]

Smithfield Consultants (Financial PR)
Alex Simmons

Rob Yates

[phone]

 

END

 

 

DISFLFEEDIIVFII