8th Nov 2005 07:00
Release date: 8th November 2005Embargoed until: 07:00 CLS HOLDINGS PLC ("CLS") ANNOUNCES ITS FIRST ACQUISITION OF OFFICES IN HAMBURG, GERMANY The Board of CLS is delighted to announce its intention to add Germany to itscore property investment regions, which currently consist of UK, Sweden andFrance. In line with this strategy to build a portfolio in Germany, the Companyis pleased to report the acquisition of a building in West Hamburg at a priceof ¢â€š¬3.6 million (‚£2.45 million) inclusive of all costs.The property, known as Frohbƒ¶sestrasse 12, was constructed in April 2005 andcomprises 1,993 sq m (21,453 sq ft) of offices together with 19 car parkingspaces. It has the benefit of a new lease with Scope International Life ScienceHamburg AG, a pharmaceutical research company, for a term of 15 years without abreak at an annual rent of ¢â€š¬248,835 (‚£169,630). The rent will be adjusted byreference to the German retail price index.The return on equity on the completed loan facility of ¢â€š¬2.68 million (‚£1.82million) is 22.8%, whilst the cash return on equity is 14.4%.This acquisition represents CLS' first investment in the German market for manyyears (having owned a property in Dƒ¼sseldorf for many years). CLS intends tomake further selective acquisitions in Germany, where the Company hasidentified an opportunity to benefit from the attractive yields and highreturns on equity on a geared basis.Executive Chairman, Sten Mortstedt, commented:"I am particularly excited by the opportunities that Germany presents as anadditional core region in our portfolio. This first venture into Hamburgprovides an excellent example of the quality of returns that we stand to gainfrom this market." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanTom Thomson, Chief Executive & Vice ChairmanDan Bƒ¤verstam, Chief Financial OfficerSteven Board, Chief Operating OfficerCLS Holdings plcwww.clsholdings.comTel. +44 (0)20 7582 7766Adam Reynolds/Ben SimonsHansard CommunicationsTel. 44 (0)20 7245 1100ENDCLS HOLDINGS PLCRelated Shares:
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