The Board of CLS is pleased to announce that its wholly owned subsidiary, Citadel Holdings Plc, has purchased 7 rue Eugène et Armand Peugeot, 92500 Rueil Malmaison, a 7,357-m² office building with 146 parking spaces. The consideration inclusive of all costs was 33 million (£29.8 million).
The property, built in 1988, was partly refurbished in 2005/06, and substantially refurbished in 2009. It is located to the west of Paris, in Rueil-Sur-Seine, an attractive and well established office area with excellent transport links both by road and rail, including a mainline station situated adjacent to the property.
The building is multi-let with existing rental income of 2.7 million (£2.4 million) yielding 8.3%, and will provide a return on equity of 16.1%. The cash return on equity of 10.2% is based on a newly completed 10-year loan facility with Société Générale of 21.7 million (£19.6 million). 95% of the cash flow is secured for three years from large corporate tenants, and 43% is secured over six years.
Executive Chairman of CLS, Sten Mortstedt, commented:"We are very pleased to have acquired such a high quality office building in Paris offering attractive returns in line with our investment criteria. It provides further evidence of CLS' ability to source and acquire attractive investments in France."
Source: CLS Holdings Plc