CLS Holdings - Wolverhampton, Fox's Lane & Ipswich, Princes Street

Date: 04 Apr 2000

The Board of CLS Holdings plc ("CLS") is pleased to announce that it has agreed heads of terms with Mezzanine Group plc for the sale of its freehold interest in the following two properties: 'Mezzanine', Fox's Lane, Wolverhampton and 'Kartouche', Princes Street, Ipswich.

The properties are currently leased from CLS by the purchasers who operate them as night-clubs.

The agreed sale price is £4.0 million, representing a yield of 8.25%, of which £2.5 million is payable in cash and £1.5 million will be settled by the issue of ordinary shares of 5 pence each in Mezzanine Group plc at a price of 53 pence per share.

CLS originally purchased the properties in December 1998 for £1.925 million, at an initial yield after costs of 16.6 per cent. Both properties were refurbished approximately ten years ago and comprise 4,090 sqm (44,027 sqft). They were held in the Group's balance sheet at a valuation of £3.04 million at 31 December 1999.

Executive Chairman, Sten Mortstedt, said:

"This transaction represents an excellent return on our original investment and demonstrates our active approach to the management of our property porfolio."

Where do I go now?: » View the latest news items » View the news archive » Subscribe to Weekly Property Newsletter » Submit news