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(Alliance News) - CLS Holdings PLC on Wednesday said it has acquired an office building in Essen, Germany for EUR38.2 million and has sold three properties in the UK and Germany.
The FTSE 250-listed commercial property investor said it has unconditionally exchanged contracts to acquire The Brix office building at Kruppstrasse 16 in Essen, Germany for EUR38.2 million. The 21,750 square metre property has a contracted rent of EUR1.72 million, and the purchase price represents a net initial yield of 4.2%. It is 72% let to three tenants, anchored by Siemens AG which occupies the majority of the space.
"The unlet space provides an opportunity for CLS to refurbish and relet the vacancy to capture market rents, and once fully let the asset will have an estimated yield above 6%," CLS noted.
The acquisition is expected to complete in early 2021.
Separately, the London-based company said it will sell its Quest House property in Hounslow and its Atholl House asset in Aberdeen for a total of GBP5.9 million, a 9.3% increase from the valuation on June 30. In Germany, it has completed on the EUR22.5 million sale of 7,500 square metres of office and retail space at Bismarckallee 18-20 in Freiburg.
Shares in CLS were trading 0.2% lower at 210.50 pence each on Wednesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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