CLS has unconditionally exchanged contracts to sell Bismarckallee 18-20 in Freiburg for €22.5 mln excluding costs, with completion expected in December 2020.
Bismarckallee 18-20 was acquired by CLS in 2013 and consists of 7,500 m2 of office and retail space over nine floors. The building is 85% let to Volksbank Freiburg with the remainder let to TICS, a travel agency, and a computer shop on the ground floor. While the building no longer fits the criteria for CLS’ portfolio as it is not in one of the key target markets, it offers a significant opportunity for the buyer.
The sale, at a price 12.3% above the 30 June 2020 valuation, allows CLS to crystallise the returns on the asset while releasing capital to continue to reinvest in the portfolio and acquisition opportunities.
Commenting on the sale, Fredrik Widlund, CEO of CLS, said: ‘The sale of Bismarckallee 18-20 secures a significant return for CLS while providing additional resources for further investment in our key markets. We continue to see significant opportunities for investment across the UK, Germany and France and remain confident in the long-term attractiveness of well-located, affordable offices in non-prime locations.’
