TIDMCLI

RNS Number : 4898H

CLS Holdings PLC

13 March 2018

   Release date:                13 March 2018 
   Embargoed until:            7.00 am

CLS Holdings plc ("CLS") announces the acquisition of

Harman House in Uxbridge, United Kingdom

CLS announces that it has unconditionally exchanged contracts to acquire Harman House, 1 George Street, Uxbridge, for GBP51 million including costs.

The property comprises 129,060 sq. ft. (11,990 sqm) of office space arranged over nine floors which, with an occupancy rate of 98%, and currently generates an annual rental income of GBP3.52 million, producing a net initial yield for CLS of 6.9%. The property has a reversionary rent profile with an estimated yield of 7.8% based on market rents.

Harman House was extensively refurbished in 2014 and has a diversified tenant base, providing a stable income from 10 tenants and a weighted average unexpired lease term of 7.9 years (or 5.8 years to first break).

The property is well-located in the town centre and adjacent to the Underground station which offers fast links into central London. Uxbridge is a well-established office location and home to a broad range of national and international occupiers.

The transaction will be financed from existing CLS cash resources.

Fredrik Widlund, Chief Executive of CLS, commented:

"In line with our strategy, the acquisition of Harman House adds to our portfolio a high-yielding, multi-let office property adjacent to good transport links, and which offers a stable and diversified income stream from strong covenants. We believe there is significant scope for us to add value by capturing existing rental potential, and increasing it further through asset management initiatives."

-ends-

For further information, please contact:

 
 CLS Holdings plc 
  www.clsholdings.com 
  Fredrik Widlund, Chief Executive 
  Officer 
  John Whiteley, Chief Financial      +44 (0)20 7582 
  Officer                              7766 
 Liberum Capital Limited 
  Richard Crawley                     +44 (0)20 3100 
  Jamie Richards                       2222 
 Whitman Howard Limited               +44 (0)20 7659 
  Hugh Rich                            1234 
 Elm Square Advisers Limited          +44 (0) 20 7823 
  Jonathan Gray                        3695 
 Smithfield Consultants (Financial 
  PR) 
  Alex Simmons                        +44 (0)20 3047 
  Sam Moodie                           2476

This information is provided by RNS

The company news service from the London Stock Exchange

END

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