CLS Holdings plc has announced that it has acquired a further property in Germany for a total consideration of €18 million inclusive of all costs.
The property known as Hans Bockler Strasse, Bochum comprises 25,115 m² of offices and retail space, together with 643 car parking spaces. The main tenant is the City of Bochum who occupy 9,740 m², 39% of the total let area. Their lease matures on 31st December 2012 and has no breaks. The property was constructed in the 1960s and has been partly refurbished. The property currently has 10,693 m² of vacant space, representing 42% of the net lettable area.
The existing rental income is €1,084,000 and estimated rental value of the property once fully let is €2,400,000 after refurbishments.
The initial yield is 6% which is expected to increase significantly once further lettings are achieved.
Executive Chairman of CLS Holdings plc, Sten Mortstedt, commented: "This investment offers potential for a significant increase in value through refurbishment and reletting of the vacant space."