CLS Holdings plc has announced that its wholly-owned subsidiary Citadel Holdings plc has completed the 14.33 million acquisition of Colt Telecom's Data Centre and French HQ at 23/27 Rue Pierre Vallette, in the Southern suburb of Malakoff, Paris.
The 10,778-m² office and industrial property produces 1.121 million p.a., which equates to 104/m² and represents an initial yield of 7.38% to CLS. With the debt finance arranged by Crédit Foncier de France, the initial return on equity is 15.26% p.a.
The property is let on an indexed lease until September 2018 with no breaks. Colt Telecom Group SA is a FTSE 250 company specializing in fiber optic networks. This building is one of their major European data centers. Colt Telecom renewed their lease in 2009 and has invested very significantly in the property for their data rooms and network hub wiring.
The building is close to the Quator office property already owned by CLS in Montrouge.
Sten Mortstedt, Executive Chairman of CLS, commented: "Positioned close to central Paris, with a strong multi-national corporation as tenant on a long term lease, this acquisition continues our investment strategy of focusing on high cash on cash returns. With its stable, indexed cash flows, it will be a strong addition to our portfolio."
Source: CLS Holdings plc