Last checked at 20 Feb 2019 07:00
Release date: 20 February 2019
Embargoed until: 07:00 am
CLS Holdings plc
("CLS", the "Group", the "Company")
announces the acquisition of 9 Prescot Street, London E1
CLS announces that it has exchanged contracts to acquire 9 Prescot Street, London E1 for £53.85 million excluding costs.
The freehold property comprises 96,948 sq ft (9,007 sqm) of multi-let office space over seven floors and is 100% let to four tenants with a weighted average unexpired lease term of 2 years to breaks. It is located on the fringe of the City in the Aldgate area, which continues to undergo significant regeneration, including the new Chinese Embassy at the former Royal Mint site, and is close to multiple key transport links including Fenchurch Street, Tower Hill, Aldgate East and Shadwell stations.
The property, which is being acquired at a capital value of £555 per sq. ft. and a net initial yield of 4.5%, has substantial reversionary rental upside to deliver an estimated yield approaching 8% through active asset management. Current contracted rental income of £2.56 million equates to £26.41 per sq ft and CLS intends to undertake a substantial refurbishment to deliver high-quality space in an improving area with limited supply.
CLS intends to finance the acquisition through existing resources and bank financing.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
"This acquisition is a clear demonstration of our ability to undertake transactions on an opportunistic basis where we can utilise our asset management expertise to deliver value over the long term in line with our strategy. The property's excellent location and attractive potential makes this an exciting acquisition for CLS."
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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