CLS has announced that its wholly owned subsidiary Citadel Holdings plc has acquired "Le Sully," rue Georges Bizet in Mantes-la-Jolie (Yvelines, 78). The freehold property is located in Mantes-La-Jolie, a suburb to the west of Paris. The property is currently under development by Bati Gestion, a well-known developer in Paris, is 60% completed and will be fully delivered in December 2006.
The building, on three floors, comprises 2,517 m² of office space and 66 internal car parking spaces.
The entire property is fully let to the C.P.A.M. des Yvelines (the French national healthcare authority) on a 15-year lease without any break options, commencing in early 2007. The net rental income will be 656,484 per annum plus indexation, the first indexation to take effect as of 1st January 2007.
The total purchase price for the property was 9,588,000 excluding VAT, inclusive of all costs, representing an initial yield of 6.85%. Based on a completed loan facility of 7,745,600 with a fixed 5 year interest rate of 4.85% per annum, cash return on equity is 14%.
Sten Mortstedt, Executive Chairman of CLS, commented: "I am very pleased with this further acquisition in the Ile de France area. The property is new and specified to a high standard. It is let to a prime tenant on a 15 year term and shows a good initial return on equity, which is likely to be enhanced further with indexation. The last published construction index, on which the rent indexation is based, showed an annual increase of 7.2%."
Source: CLS Holdings