22nd Dec 2005 07:00
Release date:22 December 2005Embargoed until: 07:00 CLS HOLDINGS PLC ANNOUNCES THE SALE OF TWO CENTRAL LONDON OFFICE BUILDINGS FOR ‚£32.2 MILLION CLS Holdings plc ("CLS") has today announced the sale of Carlow House, CarlowStreet, London NW1 and New London House, Drury Lane, London WC2 for a totalconsideration of ‚£32.2 million.Carlow House in Camden provides 47,941 sq ft (4,454 sq m) of officeaccommodation over four floors together with 13 apartments on the top floor.The offices are let to Arup Partners Incorporated under a single lease expiringin December 2014 at a rent of ‚£1,383,485 per annum (‚£29.29 per sq ft/‚£315 persq m). The apartments were each sold off on 125 year leases in 1990.A joint fund between AXA and IVG acquired the building for ‚£18.2 million,representing a net yield of 7.19%. CLS acquired the property in 1995 for ‚£11.45million. Savills and Lambert Smith Hampton represented CLS whilst King Sturgeacted for the Fund.New London House in Drury Lane provides 23,328 sq ft (2,167 sq m) of officeaccommodation together with 9,836 sq ft (914 sq m) of retail and leisure uses.The offices are multi-let and the total income from the building is ‚£950,641per annum.The property was acquired by the ING Covent Garden Limited Partnership, a jointfund between ING and Rugby Estates Plc, for ‚£14 million, representing a netyield of 6.42%. CLS acquired the property in 1994 for ‚£10.5 million. EA Shawacted for CLS in the sale.Sten Mortstedt, Executive Chairman of CLS, said:"We are pleased to announce the sale of these two mature investments, releasinga profit of ‚£1.87 million compared to our June 2005 valuations, and a cashsurplus of ‚£12.2 million after repayment of the secured loans. Central Londonoffice yields are at an all time low and we are looking to invest the proceedsin new growth opportunities both in mainland Europe and the UK." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanTom Thomson, Chief Executive & Vice ChairmanKevin Chapman, UK Property DirectorCLS Holdings plcwww.clsholdings.comTel. +44 (0)20 7582 7766Adam Reynolds/Ben SimonsHansard CommunicationsTel. +44 (0)20 7245 1100 CLS HOLDINGS PLCRelated Shares:
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