CLS has exchanged contracts to sell Albert-Einstein-Ring 17-21 in Hamburg for €36.4m excluding costs. The property was acquired by CLS in 2017 as part of the Metropolis portfolio and consists of 13,419m² of offices located in the Bahrenfeld area of Hamburg. Although the property offers long-term potential as the area and public transport is improved over the coming decade, the property is currently experiencing higher levels of vacancy and no longer meets our portfolio criteria. The sale, at a price 38% above the 31 December 2019 valuation reflecting a net initial yield of 3.6%, allows CLS to crystallise the future potential of the building and area today so that we can redeploy funds into more immediate opportunities.
Commenting on the sale, Fredrik Widlund, Chief Executive Officer of CLS, said: “Whilst Hamburg remains one of our key markets, this disposal captures value for our investors today and releases capital that can be recycled earlier into opportunities with a better income profile. We continue to see exciting opportunities in our key markets and strongly believe in the resilience and attraction of well-located, affordable offices in non-prime locations.”
