CLS Holdings has exchanged contracts to acquire a fully-let office building near Munich, Germany, from an unnamed buyer for €24.4 mln.
CLS Holdings has exchanged contracts to acquire a fully-let office building near Munich, Germany, from an unnamed buyer for €24.4 mln.
The scheme is fully let to 11 tenants and generates a rental income of €2.0 mln, representing a net initial yield of 7.9%. It is located in the municipality of Unterfoehring - approximately 8 km north-east of the Bavarian capital's centre - and provides 14,630 m2 of offices and 252 car parking spaces.
Tenants include Sky Deutschland, Kabel Deutschland and the Bavarian Academy of Television. Completion is due in mid-June.
Sten Mortstedt, executive chairman of CLS Holdings, said: 'We continue to see potential in Germany and this acquisition will further enhance our offering in that market.'
Germany is one of CLS Holdings’ core markets, accounting for 17% of the London-listed group’s total portfolio, which also spans the UK, France and Sweden. The company's gross property assets were valued at €1.6 bn at end-June 2014.