CLS Holdings plc announces that it has unconditionally exchanged contracts to acquire a fully-let office building near Munich, Germany for €24.4 mln. The scheme is let to eleven tenants and it generates a rental income of €2.0 mln, equating to a net initial yield of 7.9%.
Germany is one of CLS Holdings's core markets and it accounts for approx.. 17% of the Group's total portfolio. CLS Holdings's investment strategy has long been characterized by a willingness to be opportunistic and this acquisition sees the Company drawing on its strong local market knowledge to secure a site in an established business district near Munich.
The scheme is located in the municipality of Unterfoehring - approximately 8 km northeast of Munich's city center - and provides 14,630 m² of high-quality offices and 252 car parking spaces. It is currently 100% let with notable tenants including Sky Deutschland, Kabel Deutschland, and the Bavarian Academy of Television. Completion is due in mid-June.
Sten Mortstedt, Executive Chairman of CLS Holdings plc, commented: "I am delighted that we have secured this building in Unterfoehring, Munich, which provides an excellent long-term income stream from blue-chip tenants. We continue to see potential in Germany and this acquisition will further enhance our offering in that market."
Source: CLS Holdings