The UK's CLS Holdings has acquired a 23,982 m2 office building in Dortmund for €66.25 mln, excluding costs.
The property is located in a prime office location in the CBD of Dortmund, next to the central shopping district. Accordng to CLS, the city's central station is within 800 metres of the asset and the underground station Stadtgarten is only a few hundred metres away.
Fredrik Widlund, CLS CEO, commented: 'This asset is a high-quality, well-located office and benefits from a diversified tenant base with the opportunity to secure market rents and deliver further value over the longer-term.
'This is our third property in Dortmund, a growing and dynamic city that is benefitting from strong office demand and increasing rental growth. This acquisition again reflects our confidence in the underlying strength of the German office market.'
The property is occupied by tenants including one of Germany’s leading financial institutions, a department of the federal state of North Rhine-Westphalia and two smaller tenants with an overall weighted average unxpired lease term of 5.2 years.
CLS plans to invest in the property to improve tenant amenities and sustainability features while leasing the remaining vacant space. The property has a net initial yield of 5.1% and a reversionary yield of 5.6%.
The acquisition is expected to complete in April 2022.
