TIDMCLI

RNS Number : 5782U

CLS Holdings PLC

01 April 2019

   Release date:                1 April 2019 
   Embargoed until:            07:00 am

CLS Holdings plc

("CLS", the "Group", the "Company")

announces the acquisition of PURO, Adalperostrasse 82-86, Ismaning, Munich

CLS announces that it has exchanged contracts to acquire PURO, a multi-let office building in Munich, for EUR32.0 million excluding costs. The purchase price reflects a net initial yield of 5.1%; the reversionary yield is estimated to be 6.4%.

The property comprises 140,717 sq ft (13,073 sqm) of office space over three floors and is let to nine tenants, providing a WAULT of 4.9 years. The contracted annual rent of EUR1.73 million equates to an average of EUR11.00 per sqm per month, and with an ERV of EUR13.50 per sqm per month, presents significant opportunities for rental growth. In 2018, average rents in Munich were reported by Colliers to have increased by around 10% and, with vacancy rates in Munich below 2%, we expect rental growth to continue.

The Company expects to spend EUR3.0 million to improve the building, including converting lower ground storage into further offices.

Located within the established office area of Ismaning, between the city centre and the airport, the property benefits from excellent transport links and proximity to a variety of amenities for tenants. The building is leased to IT, telecommunications, manufacturing and healthcare companies.

CLS intends to finance the acquisition through cash resources and local bank debt.

Fredrik Widlund, Chief Executive Officer of CLS, commented:

"We are delighted to acquire PURO in Ismaning, an area of Munich in which we have been looking to invest for some time. We remain committed to building an increasingly geographically diverse portfolio and this acquisition will further strengthen our presence in Germany. PURO will allow us to use our local expertise and active management capabilities to drive rents over the long term.

-ends-

For further information, please contact:

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

John Whiteley, Chief Financial Officer

+44 (0)20 7582 7766

Liberum Capital Limited

Richard Crawley

Jamie Richards

+44 (0)20 3100 2222

Whitman Howard

Hugh Rich

+44 (0)20 7659 1261

Elm Square Advisers Limited

Jonathan Gray

+44 (0)20 7823 3695

Smithfield Consultants (Financial PR)

Alex Simmons

Rob Yates

+44 (0)20 3047 2546

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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