CLS buys three German office buildings for €89.7m

Real estate firm CLS Holdings said it had bought three office buildings in Düsseldorf, Berlin and Hamburg for €89.7m million from Commodus Real Estate.

The three properties are occupied by 31 tenants and are currently 93% occupied with a weighted average unexpired lease term of 4.9 years.

Current average rent is 22% below estimated market rents, “thereby providing an opportunity to actively manage the assets to bring the rent to market levels over the medium term,” CLS said on Friday. The net initial yield on the portfolio is 4.8% with a reversionary yield of 6.1%.

The acquisition of the portfolio is expected to complete in the second quarter of 2021.