REG - CLS Holdings PLC - CLS announces 30-year lease in Essen, Germany

CLS HoldingsAnnouncement

30/06/2023 07:00

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RNS Number : 4436E  CLS Holdings PLC  30 June 2023

 

 

 

PRESS RELEASE

 

 

Release date:                30 June 2023

Embargoed until:           07:00 am

 

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

CLS leases 17,400 sqm for 30 years in Essen, Germany

 

CLS announces that it has signed a 30-year lease with the City of Essen (the
"City") at The Brix, Kruppstrasse 16, Essen for 17,400 sqm (187,292 sq. ft).
 The lease also benefits from being index linked.

 

Located in the central business district, The Brix offers an exceptional
location with superb access to local and regional transportation networks. The
property is situated just 500 meters from Essen's central train station and
close to several major roads connecting the Ruhr area. Essen, known as one of
Germany's greenest cities, has attracted substantial investment in
infrastructure, culture and education in recent years.

 

As part of the Group's Sustainability Strategy, and in agreement with the
City, CLS will spend €20 million over the next three years to substantially
improve the building. This ambitious project will include a host of energy
efficiency, sustainability, and wellbeing initiatives, providing the City with
high quality and flexible workspace, in compliance with the EU taxonomy.

 

The current occupier's tenancy agreement will end on 31 July 2024, and the
construction and improvements programme will begin in August 2024, with
estimated completion in mid-2025. The Brix was acquired by CLS in April 2021
with 28% vacancy and it is now fully let following the above letting.

 

This deal highlights CLS' commitment to transforming existing properties into
future ready high-quality, sustainable offices that will meet demanding
standards. Additionally, with the new lease and the planned improvements, the
asset is estimated to generate a substantial increase in value between now and
practical completion.

 

Fredrik Widlund, Chief Executive Officer of CLS, commented:

 

"This is one of the largest-ever leases for CLS in Germany and a fantastic
achievement for the team. Together with the City of Essen, we have committed
to invest in a comprehensive refurbishment programme in line with our strategy
to operate modern and sustainable offices of the highest quality.

 

Demand for the right office space remains strong in Germany, highlighting the
significant advantages of having our dedicated, in-house asset management team
with local expertise working to enhance our property portfolio.

 

We look forward to working with the City of Essen and to welcome its employees
and citizens to The Brix."

 

-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 Limited

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

Hastings Tarrant

+44 (0)20 3047 2546

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