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(Alliance News) - CLS Holdings on Friday announced it has exchanged contracts to acquire three office buildings in Dusseldorf, Berlin and Hamburg from German investment fund Commodus Real Estate for EUR89.7 million.
The London-based commercial property investor said the buildings are currently 93% occupied and have a combined net initial yield of 4.8%. It said it expects the acquisition to complete in the second quarter of 2021.
CLS Holdings said the Dusseldorf building comprises 16,622 square metres of space and 252 parking spaces. It is fully let to eight tenants with a weighted average unexpired lease term of 3.9 years and current rent of EUR2.5 million.
The Berlin building has 6,105 square metres of lettable space, is fully let to 10 tenants with a weighted average unexpired lease term of eight years and current rent of EUR1.1 million.
The Hamburg property comprises 9,676 square metres with 191 parking spaces. It is let to 13 tenants with a weighted average unexpired lease term of 3.9 years and current rent of EUR900,000. It is currently 21% vacant.
"These assets are high-quality, well-located German offices and benefit from a diversified tenant base with the opportunity to secure market rents and valuation uplifts in the years ahead. In the past year CLS has been able to capitalise on a range of opportunities in our target markets, acquiring or committing to acquire assets for over GBP280 million while remaining disciplined in our investment criteria," said Chief Executive Fredrik Widlund.
Shares in CLS Holdings were down 1.2% at 212.50 pence in London on Friday.
By Zoe Wickens; zoewickens@alliancenews.com
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