The acquisition of Chancery House in Sutton announced this morning is a typical CLS transaction, providing a building with asset management opportunities and for which the arbitrage between debt costs and yield is attractive. The building offers scope for improvements and revenues can be raised through letting the building fully as it is currently 16% vacant. The income will be marginally accretive for FY15E, more so for FY16E but we are not changing our forecasts as a result. We retain our B

05 Oct 2015
Panmure Morning Note 05-10-15

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Panmure Morning Note 05-10-15
CLS Holdings plc (CLI:LON) | 61.0 -1 (-2.6%) | Mkt Cap: 243.0m
- Published:
05 Oct 2015 -
Author:
Sue Munden -
Pages:
3 -
The acquisition of Chancery House in Sutton announced this morning is a typical CLS transaction, providing a building with asset management opportunities and for which the arbitrage between debt costs and yield is attractive. The building offers scope for improvements and revenues can be raised through letting the building fully as it is currently 16% vacant. The income will be marginally accretive for FY15E, more so for FY16E but we are not changing our forecasts as a result. We retain our B