FURTHER DEVELOPMENT AT LANDSH

RNS Number : 3600U

CLS Holdings PLC

14 October 2010

 



Release date:              14 October 2010

Embargoed until:         07:00

CLS HOLDINGS PLC

FURTHER DEVELOPMENT AT LANDSHUT, GERMANY

WITH 17.5 YEAR PRE-LETTING TO E.ON

CLS Holdings plc ("CLS") announces that it has agreed to develop a further 3,400 sq m (36,597 sq ft) of space at its office development in Landshut, Germany which has been pre-let to E.ON Service Plus GmbH ("E.ON"), the existing tenant of the other three buildings in the complex.  The development, which is to be completed by the summer of 2012, has been let on a 17.5 year index-linked lease until March 2030 with no breaks.

The new office space will produce €410,000 of income p.a., which equates to €114 per sq m and represents an initial yield of 8.2% to CLS at a cost of €5 million.  With debt finance arranged by Deutsche Postbank AG, the initial return on equity will be 14.9% p.a.

The new property will be the fourth phase of a 14,100 sq m (151,771 sq ft) fully-let office complex, including CLS's original purchase in 2006, and phases two and three developed in 2009.  E.ON will use the new property as office space for internal services within the E.ON group of companies. 

Sten Mortstedt, Executive Chairman of CLS, commented:

"We are delighted to expand our relationship with E.ON with this pre-letting for a new building adjacent to its existing building which we own.  It highlights the benefits of working closely with 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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