REG - CLS Holdings PLC - Acquisition

CLS HoldingsAnnouncement

17/02/2022 07:00

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RNS Number : 9338B  CLS Holdings PLC  17 February 2022

 

Release date:                17 February 2022

Embargoed until:           07:00 am

 

 

CLS Holdings plc ("CLS" or the "Group")

announces the €25 million acquisition of an office building in Dusseldorf

 

CLS announces that is has unconditionally exchanged contracts to acquire a
9,168 sqm / 98,684 sq. ft office building in Dusseldorf for €25 million
(€2,724 per sqm) excluding costs from alstria office REIT-AG.

 

Kanzlerstraße 8 is situated in a well-connected and growing submarket in
Dusseldorf. The overground station, Dusseldorf Rath, and the underground
station, Rather Waldstadion, are both within 400m of the asset. The airport
can be reached within 10 minutes by car and the central station in 16 minutes
by overground. Dusseldorf is one of the main political, economic, and cultural
centre of the Rhine-Ruhr region with a population of c. 11 million and one of
the "Top 7" office markets.

 

The property is currently occupied by three tenants including the anchor
tenant Amevida (c. 70% by space), Kinderparadies, and ConSol with a WAULT of
c. 8 years. CLS plans to let remaining vacant space, enhance the carpark and
ESG credentials, and manage the future lease breaks. The property currently
has a net initial yield of 5.1% and a reversionary yield of 5.7%.

 

The acquisition is expected to complete in April 2022.

 

Fredrik Widlund, Chief Executive Officer of CLS, commented:

 

"This asset is a well-located office building and benefits from an existing
strong tenant base with the opportunity to secure market rents and valuation
uplifts in the years ahead. This acquisition also reflects our confidence in
the underlying strength of the German office market, particularly in key
regional cities. We look forward to working with the tenants to improve the
building further and enhancing its sustainability."

 

-ends-

For further information, please contact:

 

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com (http://www.clsholdings.com/)

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

+44 (0)20 7582 7766

 

Liberum Capital

Richard Crawley

Jamie Richards

+44 (0)20 3100 2222

 

Panmure Gordon

Hugh Rich

+44 (0)20 7886 2733

 

Berenberg

Matthew Armitt

Richard Bootle

+44 (0)20 3207 7800

 

Edelman Smithfield (Financial PR)

Alex Simmons

Rob Yates

+44 (0)20 3047 2000

 

 

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