8th May 2006 07:00
Release date: 8th May 2006Embargoed until: 07:00 CLS HOLDINGS PLC ("CLS") ANNOUNCES FURTHER ACQUISITION IN PARIS The Board of CLS is pleased to announce that its wholly owned subsidiaryCitadel Holdings plc ("Citadel") has purchased a property located at 18 rueGoubet, 75019 Paris, comprising 1,294 sq m (13,929 sq ft) of offices and 27parking spaces.The property was built in the 1970s and is located in the north-eastern part ofParis. There are two underground stations within a 5-minute walk and theproperty also benefits from direct access to the Paris ring road.The property is substantially let to Selecta, the market leader for snacks/drinks dispensing machines in public places, on a new 9-year lease with atenant break after 6 years. The net rental income at the time of completion was¢â€š¬ 247,020 (‚£169,505) per annum and is expected to reach ¢â€š¬ 276,020 (‚£189,405)per annum when fully let, vacant space is currently 129 sq m (1,389 sq ft).This equates to a rental value of ¢â€š¬199 per sq m (‚£12.69 per sq ft) inclusive ofcar parking. The total purchase price, including all costs, was ¢â€š¬ 3,339,000 (‚£2,291,223), representing a 7.4% yield. Based on a completed loan facility of ¢â€š¬2,700,000 (‚£1,852,741) at a 3.9% interest rate per annum on a floating ratebasis, the initial return on equity is 21.2%, whilst the initial cash return onequity is 8.5%.L'Etoile Properties advised CLS in respect of this acquisition.Executive Chairman for CLS, Sten Mortstedt, commented:"I am very pleased with this further acquisition in Paris. The property is letto a prime tenant on a 9-year basis, ensuring secure income and an attractivefinancial return." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanPer Sjƒ¶berg, Chief Executive OfficerDan Bƒ¤verstam, Chief Financial 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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