CLS Holdings acquires Dusseldorf office building

Property investment firm CLS Holdings has exchanged contracts to acquire a 9,168 square metre office building in Dusseldorf from Alstria Office REIT for €25.0m.

CLS Holdings said on Thursday that the property was currently occupied by three tenants, including the anchor tenant Amevida, Kinderparadies, and ConSol, with a weighted average unexpired lease term of around eight years. The property currently has a net initial yield of 5.1% and a reversionary yield of 5.7%.

The FTSE 250-listed firm said the acquisition of Kanzlerstraße 8, situated in "a well-connected and growing submarket in the German city", was expected to complete in April 2022.

Chief executive Fredrik Widlund said: "This asset is a well-located office building and benefits from an existing strong tenant base with the opportunity to secure market rents and valuation uplifts in the years ahead.

"This acquisition also reflects our confidence in the underlying strength of the German office market, particularly in key regional cities."