Renewal of Government Leases

RNS Number : 5840S

CLS Holdings PLC

04 October 2017

 

CLS Holdings plc

("CLS", the "Company", the "Group")

Renewal of Leases on 14 properties with

the Secretary of State for Communities and Local Government

CLS Holdings plc announces that it has completed lease renewals with the Secretary of State for Communities and Local Government (the "SSCLG") on 14 properties across the UK for which the SSCLG had leases which were due to expire, or had a break clause effective, on 31 March 2018.  The properties are predominantly used as Job Centres by the Department for Work and Pensions.

New ten year leases have been granted on 13 properties which, with 11 having breaks in 2023 or 2026, provide a weighted average unexpired lease term to first break of 6.8 years. One property's lease has been extended on a short-term basis.  The annual rent from the properties will be £5.5 million (previously: £6.5 million), with the majority index-linked to the Consumer Price Index.  None of the leases has a rent-free period or other inducement.

Fredrik Widlund, Chief Executive Officer of CLS, said:

"In 2013, when CLS bought its portfolio of Government-let properties yielding 12%, it was confident that the vast majority of the leases with events in 2018 would successfully renew. I am delighted that our in-house asset management team has secured such a positive outcome which addresses the uncertainty which these lease events had caused, and which is likely to result in a commensurate increase in the values of the relevant properties at 31 December 2017."

For further information, please contact:

CLS Holdings plc     
www.clsholdings.com   
[phone]
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer

Liberum Capital Limited
[phone]
Richard Crawley

Jamie Richards

Panmure Gordon (UK) Limited
[phone]
Dominic Morley
Andrew Potts

Elm Square Advisers Limited   
[phone]
Jonathan Gray

Smithfield Consultants (Financial PR) 
[phone]
Alex Simmons

 

END

 

 

MSCLLFLVIALVIID