CLS Holdings plc completes purchase of Apex Tower, New Malden

CLS Holdings plc (“CLS”) confirms that, further to the announcement made on 4 August 2010, it has completed the purchase of Apex Tower, High Street, New Malden for £21.46 million including costs. Apex Tower is located on the opposite side of the High Street to CI Tower, which CLS also owns.

Apex Tower consists of 15 upper floors of offices (9,185 sq m / 98,869 sq ft), four retail units and a public house at ground floor level (1,265 sq m / 13,618 sq ft) and a four storey car park at the rear.

The building is fully let and produces £1.86 million income p.a., of which 94% is from a lease to BAE Systems on the whole of the offices expiring in June 2020. The retail tenants include Tesco Stores and William Hill Organisation. The net initial yield to CLS is 8.66% and with debt financing arranged by Deutsche Postbank AG, the initial return on equity is 16.1% p.a.

Sten Mortstedt, Executive Chairman of CLS, commented:

"We are pleased to conclude the purchase of Apex Tower, which provides an excellent long-term income stream from blue-chip tenants together with a number of short and medium-term asset management opportunities. It continues our focus on owning cost effective offices, which generate reliable cash flow.“

source : CLS Holdings plc