REG - CLS Holdings PLC - CLS announces conversion of Debussy, Paris

CLS HoldingsAnnouncement

17/06/2024 07:00

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RNS Number : 5699S  CLS Holdings PLC  17 June 2024

 

PRESS RELEASE

 

 

Release date:               17 June 2024

Embargoed until:           07:00 am

 

CLS Holdings plc ("CLS" or the "Group")

CLS announces the conversion of Debussy, Paris to Serviced Apartments

 

CLS announces that it has signed agreements with Edgar Suites and Nexity for
the conversion of its office property Debussy, Boulevard de la Republique, La
Garenne-Colombes, Paris into serviced apartments.

 

CLS will invest in the region of €12 million over a two-year period to
convert the existing office building into 57 serviced apartments which will be
operated by Edgar Suites, an innovative and successful aparthotels operator,
on a 12-year lease with a base rent and a turnover element.

 

Nexity, a leading French developer, has been appointed under a fixed price
contract for the construction works which will commence in early 2025 with
expected completion at the end of 2026.

 

The conversion and contract commencement are subject to necessary statutory
permissions and discussions with the City are well progressed.

 

Built in 1993 with a glass and stone façade, the 5 storey, 45,187 sq. ft
(4,198 sqm) building benefits from underground parking and green spaces to the
rear of the building.  As part of our long-term sustainability strategy, it
had been identified as a building with limited office life, requiring
significant investment to meet modern standards.   With the increased demand
for housing in major cities, the conversion facilitates the ability to recycle
the structure and reduce the impact of embodied carbon whilst delivering
substantial benefits for the local area.

 

Fredrik Widlund, Chief Executive Officer of CLS, commented:

 

"We always look to optimise the use and value of our properties and the
conversion to serviced apartments offers an opportunity to generate attractive
returns by converting an older office building in a growing and dynamic part
of Paris. We are delighted to have signed these agreements that will both
diversify our French portfolio and give us exposure to a growing and exciting
sector of the market. We believe there will be further opportunities such as
this where we can create value through innovative development and reuse,
maximizing the efficiency of our portfolio for the years ahead."

 

-ends-

 

 

For further information, please contact:

 

 

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com (http://www.clsholdings.com)

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

+44 (0)20 7582 7766

 

Liberum Capital Limited

Jamie Richards

+44 (0)20 3100 2128

 

Panmure Gordon

David Watkins

+44 (0)20 7886 2720

 

Berenberg
Matthew Armitt

Richard Bootle

+44 (0) 203 207 7800

Edelman Smithfield (Financial PR)

Alex Simmons

Hastings Tarrant

+44 (0)20 3047 2546

cls@edelmansmithfield.com

 

 

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