4th Oct 2005 06:00
Embargoed: Tuesday 4 October 2005, 07:00hrs CLS HOLDINGS PLC ("CLS") ACQUISITION OF ONE PROPERTY & SALE OF TWO PROPERTIES IN FRANCE The Board of CLS is pleased to announce that its wholly owned subsidiaryCitadel Holdings plc ("Citadel") has acquired 3 Allƒ©e du 1er Mai,Croissy-Beaubourg.This freehold property is located in Croissy-Beaubourg, a suburb to the east ofParis. The property was constructed in 1985 with extensions completed in 1991and 1996 and comprises 3,301 sq m (35,472 sq ft) of office space and 100 carparking spaces. The property is fully let to Polymerland France, a companywithin the General Electric Group, on a new 9 year lease without breaks. Thenet rental income is ¢â€š¬400,000 (‚£270,000) per annum, which equates to ¢â€š¬121.18per sq m (‚£7.01 per sq ft) inclusive of car parking. The total purchase pricefor the property was ¢â€š¬5,050,000 (‚£3,408,750) inclusive of all costsrepresenting an initial yield of 7.9%. Based on a credit approved loan facilityof ¢â€š¬3,900,000 (‚£2,700,000) with an interest rate of 3.15% per annum on afloating rate basis, the return on equity is 29.1% whilst the cash return onequity is 18.9%.L'Etoile Properties advised CLS in respect of this acquisition.In addition, Citadel has sold two properties in France. Rue de l'Abbƒ© Hazard,located in Nanterre, a Paris suburb, was sold for ¢â€š¬788,500 (‚£532,237) beingvalued at ¢â€š¬550,000 (‚£371,250) as at 30 June 2005. The property was purchased in2001 for ¢â€š¬552,000 (‚£372,600). Rue Lord Byron, Paris 8th was sold for ¢â€š¬4,222,500(‚£2,851,875) (valued as of 30 June 2005 at ¢â€š¬4,220,000 (‚£2,849,107)) andpurchased in 1999 for ¢â€š¬3,290,000 (‚£2,220,750).Executive Chairman, Sten Mortstedt, commented:"I am very pleased with this further acquisition in France. The property is letto a prime tenant on a long-term basis, ensuring secure income and anattractive financial return. In addition, we are happy to have sold twoproperties where we could see no further growth at a good profit and for pricesin excess of their June valuations." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanDan Bƒ¤verstam, Chief Financial OfficerCLS Holdings plcTel. +44 (0)20 7582 7766www.clsholdings.comBen SimonsHansard CommunicationsTel. +44 (0)20 7245 1100ENDCLS HOLDINGS PLCRelated Shares:
CLS Holdings