The Board of CLS is pleased to announce that its wholly owned subsidiary Citadel Holdings plc ("Citadel") has acquired 3 Allée du 1er Mai, Croissy-Beaubourg.
This freehold property is located in Croissy-Beaubourg, a suburb to the east of Paris. The property was constructed in 1985 with extensions completed in 1991 and 1996 and comprises 3,301m² (35,472 sq ft) of office space and 100 car parking spaces. The property is fully let to Polymerland France, a company within the General Electric Group, on a new 9 year lease without breaks. The net rental income is 400,000 (£270,000) per annum, which equates to 121.18 per m² (£7.01 per sq ft) inclusive of car parking. The total purchase price for the property was 5,050,000 (£3,408,750) inclusive of all costs representing an initial yield of 7.9%. Based on a credit approved loan facility of 3,900,000 (£2,700,000) with an interest rate of 3.15% per annum on a floating rate basis, the return on equity is 29.1% whilst the cash return on equity is 18.9%.
L'Etoile Properties advised CLS in respect of this acquisition.
In addition, Citadel has sold two properties in France. Rue de l'Abbé Hazard, located in Nanterre, a Paris suburb, was sold for 788,500 (£532,237) being valued at 550,000 (£371,250) as at 30 June 2005. The property was purchased in 2001 for 552,000 (£372,600). Rue Lord Byron, Paris 8th was sold for 4,222,500 (£2,851,875) (valued as of 30 June 2005 at 4,220,000 (£2,849,107)) and purchased in 1999 for 3,290,000 (£2,220,750).
Executive Chairman, Sten Mortstedt, commented: "I am very pleased with this further acquisition in France. The property is let to a prime tenant on a long-term basis, ensuring secure income and an attractive financial return. In addition, we are happy to have sold two properties where we could see no further growth at a good profit and for prices in excess of their June valuations."
Source: CLS Holdings