CLS Holdings has invested €89.7m to buy three office buildings in Germany from Commodus Real Estate.
The FTSE 250 property investment company has agreed to acquire the 16,622sqm Hansaallee 299 property in Düsseldorf, the 6,105sqm Storkower Strasse 132 asset in Berlin and the 9,676sqm Wendenstrasse 408 building in Hamburg.
CLS said the buildings are currently 93% occupied with a weighted average unexpired lease term of 4.9 years and the current average rent is 22% below estimated market rents, thereby providing an opportunity to actively manage the assets to bring the rent to market levels over the medium term.
Fredrik Widlund, CEO of CLS Holding said: “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.”
Widlund said in the past year CLS has been able to capitalise on a range of opportunities in its target markets, acquiring or committing to acquire assets for over £280m (€316.6m) while remaining disciplined in its investment criteria.
Leonhard Sachsenhauser, managing director at Commodus Real Estate, said: “We are pleased that we have been able to successfully stabilise three properties and bring them to the market despite the currently prevailing heightened uncertainty in the market.
“For all three properties, we have achieved a sustainable increase in value through targeted refurbishment and revitalisation through our active asset management approach.”
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