The Board of CLS has announced the completion of the acquisition of a portfolio of properties in Germany for a total consideration of approx. 27,7 million (£18,740,074) inclusive of all costs. All three buildings are located in the Munich area.
The property known as Technocenter in Gräfelfing, Munich, was constructed in 2002 and comprises offices of 6,885 m² and 125 parking spaces. The property is fully let to Dr. Hönle AG, a leading developer of UV technology, on a 6-year unexpired lease, with an annual rent of 1,002,616 (£676,301). The total acquisition cost for this investment was 14,640,920 (£9,875,831).
The property known as Büropark am Messegelände is located in Landshut north of Munich. The property was constructed in 2002 and comprises offices of 3,633 m² and 45 car parking spaces. The property is fully let to EON, the international supplier of electricity and gas, generating a total annual rent of approx. 0,4 million (£300,019) guaranteed for a 6-year period. The total acquisition cost for this investment was approx. 5,8 million (£3,914,523) including all costs.
The property known as the German headquarter of Trend Micro Inc. is located in Unterschleissheim, Munich. The property was constructed in 2001 and comprises offices and storage of 2,947 m² of offices and storage and 46 car parking spaces. The property is fully let on a 5-year unexpired lease and generates an annual rental income of approx. 0,5 million (£337,362). The total acquisition cost was approx. 7,3 million (£4,949,720).
The initial yield of the portfolio after costs is 7.0% and the return on equity is 17.5% based on a completed 7-year fixed interest rate loan facility of approx. 22 million (£15,008,432).
Christian Holle of IAM has acted as consultant for CLS on all these transactions.
Executive Chairman for CLS, Sten Mortstedt, commented: "I am pleased with the acquisition of these three properties in Munich. The Munich area is one of the most prosperous in Germany with an active and expanding business community. The properties within this portfolio are fully let new office buildings which generate attractive financial returns."