23rd Jan 2006 07:00
Release date: 23 January 2006Embargoed until: 07:00 CLS HOLDINGS PLC ANNOUNCES NEW LETTINGS AND LEASE EXTENSIONS AT SPRING GARDENS, LONDON SE11 CLS Holdings plc ("CLS") today announces new lettings to the Home Office at itsSpring Gardens Estate in Vauxhall, London SE11. The Home Office has committedto two further infill buildings and has agreed to extend a number of existingleases to take control of the entire Estate. The Home Office is now the soleoccupier of Spring Gardens following the relocation of CLS's own offices to newpremises in Victoria in December 2005.Spring Gardens currently provides 171,392 sq ft (15,923 sq m) of officeaccommodation in six modern buildings arranged around a central courtyard. Thetwo new infills, which will be constructed by CLS, will provide a further26,945 sq ft (2,503 sq m) taking the total to 198,337 sq ft (18,426 sq m).Planning consent for the first new infill was secured in June 2005 and uponcompletion in December 2006 the new building will provide 10,175 sq ft (945 sqm) of offices. The Home Office has exercised an option signed in 2004 inrespect of this infill and at completion will take a lease to 2026 at a rent of‚£32.00 psf (‚£344 psm).Planning consent for the second new infill was granted in August 2005 and thisbuilding will provide a further 16,770 sq ft (1,558 sq m) of new offices, alsodue to complete in December 2006. The Home Office has entered into a newcommitment for this infill which expires in 2026 at an initial rent of ‚£30.49psf (‚£328 psm).In addition, upon completion of these two new infills, the Home Office willextend a number of existing leases such that the whole of the Estate will belet until 2026. The total income will initially rise from ‚£5,451,438 per annumto approximately ‚£6,288,355 per annum.Until 2015, 55% of the total income will be subject to open market rent reviewand 44% subject to annual indexation. From 2015 until expiry in 2026, 100% ofthe rent will be subject to annual indexation.Sten Mortstedt, Executive Chairman of CLS, said:"This is a significant transaction for CLS as it substantially enhances thevalue of one of our most significant UK holdings and represents the conclusionof many years of co-operation with the Home Office. We are pleased to havesecured the Home Office as a long term tenant and will be working with them todeliver these new offices within the next 12 months." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanPer Sjƒ¶berg, Chief Executive OfficerKevin Chapman, UK Property DirectorCLS Holdings plcwww.clsholdings.comTel. +44 (0)20 7582 7766Ben SimonsHansard CommunicationsTel. +44 (0)20 7245 1100ENDCLS HOLDINGS PLCRelated Shares:
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