Business
New French Acquisition
New French Acquisition.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \n6 January 2010\n\n\n CLS HOLDINGS PLC (CLS) \n\n ANNOUNCES A NEW FRENCH ACQUISITION \n\nThe Board of CLS is pleased to announce that its wholly owned subsidiary,\nCitadel Holdings Plc, has purchased 7 rue Eugène et Armand Peugeot, 92500 Rueil\nMalmaison, a 7,357 sq m (79,161 sq.ft) office building with 146 parking spaces.\nThe consideration inclusive of all costs was €33 million (£29.8 million).\n\nThe property, built in 1988, was partly refurbished in 2005/06, and\nsubstantially refurbished in 2009. It is located to the west of Paris, in\nRueil-Sur-Seine, an attractive and well established office area with excellent\ntransport links both by road and rail, including a mainline station situated\nadjacent to the property.\n\nThe building is multi-let with existing rental income of €2.7 million (£2.4\nmillion) yielding 8.3%, and will provide a return on equity of 16.1%. The cash\nreturn on equity of 10.2% is based on a newly completed ten-year loan facility\nwith Société Générale of €21.7 million (£19.6 million). 95% of the cash flow is\nsecured for three years from large corporate tenants, and 43% is secured over\nsix years.\n\nExecutive Chairman of CLS, Sten Mortstedt, commented:\n\n\"We are very pleased to have acquired such a high quality office building in\nParis offering attractive returns in line with our investment criteria. It\nprovides further evidence of CLS' ability to source and acquire attractive\ninvestments in France.\"\n\nFor further information, please contact:\n\nSten Mortstedt, Executive Chairman\n\nHenry Klotz, Chief Executive Officer\n\nCLS Holdings plc\n\nwww.clsholdings.com\n\nTel. +44 (0) 20 7582 7766\n\n\n \n ","length":1793,"tagName":"div"}]