UK commercial property investor CLS Holdings has purchased a multi-let office property in Dortmund, Germany, for €35.6 mln from a US investment manager.
Gotic Haus, Westfalendamm 100, is a multi-let property comprising 22,296 m2 of office space which, with an occupancy rate of 94.6%, currently generates a rental income of €2.8 mln per annum, reflecting a net initial yield of 7.1%.
'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,' commented Fredrik Widlund, chief executive of CLS. 'The letting market in Dortmund continues to improve and this investment complements our existing portfolio whilst offering several asset management opportunities.'
The property is leased to 15 tenants with a weighted average unexpired lease term of 3.3 years.
According to CLS, the transaction will be financed with existing cash resources and debt from a local German bank.
