Expansion and new lease at Gr

RNS Number : 1242V

CLS Holdings PLC

28 October 2010

 



Release date:              28 October 2010

Embargoed until:         07:00

CLS HOLDINGS PLC

SIGNS 1,642 SQ M EXPANSION AND NEW 10 YEAR LEASE

WITH DR. HÖNLE AG IN MUNICH

CLS Holdings plc ("CLS") announces that it has agreed to develop a further 1,642 sq m (17,674 sq ft) of space at its office and light industrial property, Gräfelfing, in Munich, Germany for its existing single tenant Dr. Hönle AG ("Dr. Hönle").   The new space is to be completed by the end of 2011, and has been let, along with the existing space, on an index-linked lease until October 2020 with no breaks, forming an 8,527 sq m (91,783 sq ft) complex.

The expanded space will produce €1,096,236 of income p.a., which equates to €120 per sq m and represents a net initial yield of 7.7% of value to CLS.  With debt finance arranged by Deutsche Postbank AG, the initial return on equity is 18.3% p.a.

Dr. Hönle is among the leading manufacturers of UV technology for industrial applications world-wide and is listed on the Prime Standard at the German Stock Exchange.   

Sten Mortstedt, Executive Chairman of CLS, commented:

"We are delighted to expand and extend our relationship with Dr. Hönle with this pre-letting for new space.  Once again, it highlights the benefits of working closely with our tenants to meet their occupational needs, and provides further secure, long-term income for the Group."

-ends-

For further information, please contact:

CLS Holdings plc                                                                    [phone]

www.clsholdings.com

Sten Mortstedt, Executive Chairman

Henry Klotz, Chief Executive Officer

Richard Tice, Deputy Chief Executive Officer

Kinmont Advisory                                                                    [phone]

Jonathan Gray

Smithfield                                                                                [phone]

Alex Simmons

 

END

 

 

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