CLS Holdings plc announces acquisition in Paris

CLS Holdings plc (“CLS”) announces today that its wholly owned subsidiary Citadel Holdings plc has completed the €14.33 million acquisition of Colt Telecom’s Data Centre and French HQ at 23/27 Rue Pierre Vallette, in the Southern suburb of Malakoff, Paris.

The 10,778 sq m (116,014 sq ft) office and industrial property produces €1.121 million p.a., which equates to €104 per sq m and represents an initial yield of 7.38% to CLS. With the debt finance arranged by Crédit Foncier de France, the initial return on equity is 15.26% p.a.

The property is let on an indexed lease until September 2018 with no breaks. Colt Telecom Group SA (“Colt Telecom”) is a FTSE 250 company specialising in fibre optic networks. This building is one of their major European data centres. Colt Telecom renewed their lease in 2009 and has invested very significantly in the property for their data rooms and network hub wiring.

The building is close to the Quator office property already owned by CLS in Montrouge.

Sten Mortstedt, Executive Chairman of CLS, commented:

“Positioned close to central Paris, with a strong multi-national corporation as tenant on a long term lease, this acquisition continues our investment strategy of focussing on high cash on cash returns. With its stable, indexed cash flows, it will be a strong addition to our portfolio.”

source : CLS Holdings plc