CLS Holdings plc - France, Courbevoie, 2/4 boulevard Georges Clémanceau

Date: 24 Feb 2004

The Board of CLS is pleased to announce that its wholly owned subsidiary Citadel Holdings plc has acquired a further property in France, 2/4 boulevard Georges Clémanceau, 92400 Courbevoie.

This freehold property is located in central Courbevoie, a suburb to the west of Paris, adjoining La Défense. The property was constructed in 1972 and comprises 1,972 sq m (21,227 sq ft) of office space and 20 car parking spaces. The property is 91% let and the vendor provided a one year rent guarantee for the vacant space. The net rental income from the property is €443,217 (£299,171) which equates to €224.75 per sq m (£14.09 per sq ft) inclusive of car parking. The total purchase price for the property was €5,040,000 (£3,381,750), inclusive of all costs, representing an initial yield of 8.8%. The return on equity is 36.0% whilst the cash return on equity is 20.7%, based on a completed loan facility of €4,000,000 (£2,700,000) at an interest rate of 3.5% per annum on a floating rate basis.

L’Etoile Properties advised CLS in respect of this acquisition.

Executive Chairman, Sten Mortstedt, commented:

“I am pleased with this further acquisition of an office building in the Paris area. The acquisition demonstrates that we can still obtain very attractive financial returns by investing in high quality office buildings in France.”

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