UK-listed CLS Holdings announces that it has exchanged contracts to acquire a multi-let office property in Dortmund, Germany, for €35.6 million, excluding costs, from a US investment manager.
Gotic Haus, Westfalendamm 100, is a multi-let property comprising 22,296 sqm (239,992 sq ft) of office space which, with an occupancy rate of 94.6%, currently generates a rental income of €2.8 million per annum, reflecting a net initial yield of 7.1%.
The property has a diversified tenant base which provides a stable income from 15 tenants and a weighted average unexpired lease term of 3.3 years. The property is located on the “Buro Corridor” and adjacent to the U-Bahn station Kohlgartenstrasse, from which it takes less than ten minutes by train to reach the city centre.
The transaction will be financed with existing cash resources and debt from a local German bank.
Fredrik Widlund, Chief Executive of CLS, commented:
“The acquisition of Gotic Haus is consistent with our strategy of investing in multi-let, high-quality offices in major cities across our three core markets: the UK, Germany, and France. The letting market in Dortmund continues to improve and this investment complements our existing portfolio whilst offering several asset management opportunities”.
Source: CLS Holdings