Acquisition

RNS Number : 1828B

CLS Holdings PLC

05 October 2015

 



Release date:                5 October 2015

Embargoed until:            7am

CLS Holdings plc

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

CLS Holdings plc announces acquisition of

£10.2 million office building in Sutton, South London

CLS Holdings plc announces that it has exchanged contracts to acquire Chancery House, St Nicholas Way, Sutton, SM1 for £10.2 million, representing a net initial yield of 7.0%.

The property comprises a 5,132 sq m (55,242 sq ft), self-contained, eight storey office building offering modern, flexible accommodation, the majority of which has been recently refurbished, and secure basement car parking.  It is multi-let to 14 tenants with an average lease length of 5.5 years and has a vacancy level of 16%.  CLS has identified asset management opportunities to improve the attractiveness of the building for its occupiers, and to attract further tenants to reduce the vacancy level.

Owing to its strategic location, outstanding transport links and diverse retail provision, Sutton is now an established office location within Greater London and is enjoying a regeneration of its town centre through substantial redevelopment.

Sten Mortstedt, Executive Chairman of CLS, commented:

"Chancery House is an attractive addition that will fit well into our London portfolio.  We believe this property is well positioned to benefit from the expected increase in office demand in Sutton, driven by our asset management initiatives and an undersupply of good quality offices in the area."

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For further information, please contact:

CLS Holdings plc                                                                               www.clsholdings.com Sten Mortstedt, Executive Chairman Henry Klotz, Executive Vice Chairman Fredrik Widlund, Chief Executive Officer John Whiteley, Chief Financial Officer	[phone]
Liberum Capital Limited Tom Fyson	[phone]
Panmure Gordon (UK) Limited                                                          Mark Taylor Russell Cook	[phone]
Kinmont Limited                                                                                Jonathan Gray	[phone]
Smithfield Consultants (Financial PR)                                               Alex Simmons	[phone]

 

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