CLS Germany, the German arm of UK-listed CLS Holdings, has acquired an office property in Berlin from Deutsche Investment for €43.5 mln without costs.
Dubbed Goldstück, the property at Kaiserin-Augusta-Allee 112-113 is a six-story office building in northwest Berlin (Charlottenburg) and consists of two adjoining buildings directly on the Spree.
Goldstück covers a rentable area of around 8,700 m2 and has 93 parking spaces. The building is currently 29% leased after the previous main tenant recently moved out. The remaining lease term for the residual space is 1.9 years.
Rolf Mensing, head of Germany at CLS Holdings said: 'With its attractive location, the Goldstück property offers significant development potential that we want to leverage with our active asset management approach.
'Taking into account current user needs, we strive to implement modern, flexible office concepts and to improve the energy efficiency of both buildings. CLS attaches particular importance to the quality of stay - more and more users are paying special attention to an inspiring work environment.'
When fully let, the building has an estimated adjustment yield of 5.6%, CLS said.
'The purchase is in line with CLS' strategy of expanding the German portfolio in a targeted manner to include office properties priced in line with the market in attractive, well-connected B-locations.
We continue to see long-term investment opportunities here. The increased use of home offices in the future and the cost savings factor as a result of the economic challenges will ensure greater demand for modern, sustainable offices, especially in well-mixed B-locations.' Mensing concluded.
Colliers International acted as a broker for Deutsche Investment in the transaction.
CLS also announced that it had purchased an office in Watford, UK, for £16.9 mln (€18.5 mln). Radius House is located on Clarendon Road in Watford and was acquired from M&G Real Estate.
The property comprises 3,830 m2 and is fully let to four tenants with a weighted average unexpired lease term of 8.1 years. The current contracted rent of £1.04 mln reflects a net initial yield of 5.6%.
Some 51% of the current income is contracted to The Secretary of State for Housing, Communities and Local Government until 2030 without break.
Both transactions will close at the beginning of 2021.
