Canada's European Commercial Real Estate has inked a deal with UK commercial property investor CLS Holdings to purchase the E.On Allee office campus near Munich for €30.2 mln.
The property, which lies 80 km north of Munich in Landshut, comprises four office properties covering 16,053 m2 of space plus 225 parking spaces. The campus was acquired in September 2016 and developed by CLS in stages to July 2012.
'The campus has made a strong contribution to the cash flow and asset value of the group and serves as a good example of our focus on active asset management in order to maximise value,' commented Fredrik Widlund, CEO of CLS. 'Its sale is consistent with our strategy of disposing of peripheral and single-let assets and recycling capital into more core investment locations.'
The sale of the asset, which is fully let to E.ON on leases expiring between 2020 and 2030, represents an uplift of €1.5 mln or 5.2% over the external valuation as of December 31 2016.
Toronto-based European Commercial Real Estate, which was incorporated in 2016 to invest in Western European property, announced earlier this year it was looking for acquisitions in Germany, France and Belgium.
