London-listed property investor CLS Holdings has completed the acquisition of an office building in Düsseldorf for €43.6 mln, reflecting a net initial yield of 7.1%.
The building at Parsevalstrasse 11, Düsseldorf generates net rental income of €3.1 mln, and has been financed with a local bank at an all-in cost fixed for seven years at 0.92%. The building has a high occupancy rate and presents significant scope for future rental uplifts and other asset management opportunities.
Fredrik Widlund, CEO of CLS, commented: 'The transaction underlines our ongoing confidence in the German property market and, as a long-term investor, we believe our broader European portfolio, with its diversified tenant base, will continue to provide a strong and stable income stream.'
The deal was first announced on 11 July.
CLS had a market capitalisation of £558 mln (€644 mln) and its property portfolio was valued at £1.49 bn at end-June 2016.
